Central Bank Finances

91 Pages Posted: 1 Oct 2013


This paper looks at the relevance of a central bank's own finances for its policy work. Some central banks are exposed to significant financial risks, partly due to the environment in which they operate, and partly due to the nature of policy actions. While financial exposures and losses do not hamper central banks' operational capabilities, they may weaken the effectiveness of central bank policy transmission. Against this backdrop, the paper analyses the determinants of a central bank's financial position and the possible implications of insufficient financial resources for policymaking. It also provides a conceptual framework for considering the question of whether central banks have sufficient financial resources.

JEL Classification: E58, E61, G01, M41

Suggested Citation

Settlements, Bank for International, Central Bank Finances. BIS Paper No. 71, Available at SSRN: https://ssrn.com/abstract=2295475 or http://dx.doi.org/10.2139/ssrn.2295475

Bank for International Settlements (Contact Author)

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4051

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