Why central banks need capital

Traditionally, central banks have taken a lofty view of their capital requirements. While they have exhorted commercial banks to have adequate capital, until comparatively recently few of them had paid attention to the question of how much capital and reserves they themselves need, if any. There are indeed good arguments for saying that they do not need capital. Their real "capital" - the resources they can call on in case of need - is the backing of the state. What is the point of a public

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 [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: