Central banks differ on profit-sharing agreements

Advanced economy central banks more likely to have formal agreements on profit distribution

Most central banks participating in the Governance Benchmarks 2023 have a profit-sharing agreement, usually but not always with their country’s government.

Among the 37 respondents, 89.2% shared profits with the government, with advanced economy countries more likely to have one than emerging market economy (EME) central banks.

A much smaller proportion, at 8.1%, distribute profits with private shareholders, while 10.8% they had an “other” kind of profit-sharing agreement. Banks could give

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