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 sect

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 indvidual account here: