Profits aren’t the main objectives of a central bank, but a dependence on government to recapitalise the bank can pose a risk to a central bank’s independence. In turn, central bank independence exists in part to prevent reckless government financing.

It is true that central banks can operate with negative equity: Israel, the Czech Republic and Chile are examples. Indeed, European Central Bank president Christine Lagarde has said the ECB, as the sole issuer of euro-denominated central bank