DNB officials propose framework for central bank capital
Study offers central banks a guide to the complexities of latent risk and independence
How much capital does a central bank need? The question is not straightforward, note Paul Wessels and Dirk Broeders in a paper published today (July 25). But they propose a framework that could guide central banks towards an answer.
Capital adequacy is rising on the agenda for many central banks, as those with large holdings of government bonds are likely to face mounting losses in the coming months.
Yet the existing literature on central bank capital is limited, the two officials from the
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 Governance
Book notes: The political economy of central banking, by Alessandro Roselli
Roselli’s book offers a comprehensive history of the relationship between governments and central banks
‘Chat Bankman-Fried’ has poor grasp of governance – study
Bank of Italy paper finds many LLMs would choose to behave in similar way to former crypto exchange owner
Hungary to change central bank law
Amended legislation would increase size of monetary council and ban creation of new foundations
BoE’s mandate may be too broad, warns Mervyn King
Former governor chats with Paul Tucker on independence and central banks’ optimal remit
Six in 10 at ECB do not trust Lagarde – staff union survey
Survey shows frustration at career progression, employment uncertainty and HR over past decade
Trump makes a U-turn on Powell
President “might” call Fed chair about lowering rates, but claims he never had any intention of firing him
Kashkari stresses importance of Fed independence
Minneapolis Fed chief expresses solidarity with Powell following Trump attacks
Trump and Powell’s war of words escalates
Fed chair slams tariffs, while president says Powell’s departure “cannot come fast enough”