Central bank balance sheets: is there an optimal structure?
Establishing guidelines is challenging, although there are many reasons why CBBSes are heterogeneous
There is no agreed formula for the ideal composition of a central bank balance sheet (CBBS). This article is a primer on CBBS, and why the structure of the balance sheet differs significantly across countries.
The monetary base is often called reserve money, or base money, and denominated as M0 or central bank money. M0 primarily comprises currency-in-circulation (CiC) and required reserves (RR).
RelatedBIS profit rises as balance sheet growsInstitution close to completing five-year strategic
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
Ruling party loyalist to become new BoT chair
Appointment of Kittiratt Na-Ranong will increase concerns about erosion of bank’s independence
US debt sustainability and central bank balance sheet dynamics
Higher interest rates are putting pressure on central bank profits and may increase supply of government debt, especially during quantitative tightening. Will central banks be required to issue bonds?
Covid stimulus did not trigger US inflation surge – NBER study
Working paper says QE and fiscal stimulus had minimal impact on price rises
Paper offers solution to EME monetary transmission puzzles
Price and exchange rate conundrums are interconnected, authors find
GCC central banks follow Fed by reducing rates
Saudi Arabia, UAE and Bahrain opt for 25bp cuts, while Qatar loosens by 30bp
Banxico working paper tackles ‘loan puzzle’
Study finds that banks increase credit to low-delinquency sectors following policy tightening
Europe’s central banks diverge on monetary policy
Norway holds, while Albania, Czech Republic and Sweden proceed with cuts
Bank of England cuts policy rate to 4.75%
Policy committee votes by 8–1 to reduce bank rate by 25bp