Understanding the central bank balance sheet

17 November, 14:00-18:00 GMT/09:00-13:00 EST
Virtual
1 day

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Agenda
Learning objectives
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About the course

In the current inflationary environment, central bank balance sheets have once again come under scrutiny. As records of monetary policy decisions, balance sheets have evolved in response to financial market conditions, supporting central banks in their key policy objectives. This practical training course will demystify their diverse and technical nature, equipping participants with the knowledge and skills to understand and interpret central bank balance sheets of the current era.

Beginning with the role and history of central bank balance sheets, participants on this programme will first explore how varied structures can support different policy goals, before delving into the application of the IFRS framework to central bank accounting practices, supporting clarity and quality of financial reporting. Participants will also develop skills in accounting for profit retention, distribution, and revaluation that reinforce central bank credibility and independence. Finally, the course will conclude with a discussion of solvency, defining what financial strength looks like within the central banking context. Through detailed and engaging instruction, central bankers will develop strategies to assess balance sheet resilience, navigate accounting and disclosure challenges, and communicate their institutions’ financial position with confidence.

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Tutors

Anjeza Beja

Former Bank of Albania

Independent international consultant, director

Mrs. Anjeza Beja is an experienced financial sector expert currently working as an international consultant for central banks. She has undertaken a number of technical assistance or training missions for the International Monetary Fund in around 30 central banks related to IFRS implementation, policy solvency and transparency. She is also engaged as a consultant with the International Finance Corporation on a digital financial services project in the Western Balkans.

Previously, she spent 12 years at the Bank of Albania, including 5 years as Director of Payments, Accounting, and Finance, where she led the implementation of IFRS and IFRS 9 and EU Payment Services Directive 2. Prior to that, she worked in the Supervision Department in several managerial positions. She holds a PhD in Economics from University of Tirana and has a Bachelor in Finance/ Banking and a Bachelor in Law. She has also concluded a Leadership Program in Financial Inclusion from the Fletcher School at Tufts University.

Liudmyla Snihurska

National Bank of Ukraine

Chief accountant and director, accounting department

Chief Accountant – Director of Accounting Department since 2023. Сandidate of economic sciences (specialty “Accounting, Analysis and Audit”), DipIFR (ACCA), DipFA (IFA), CAP (Certified Accountant Practitioner). She has 23 years of practical experience in accounting and accounting methodology in the banking sector (both in central banks and commercial banks), and more than 10 years of experience in teaching accounting and reporting. Author of 28 publications, including 7 textbooks. Working group participant on “A Central bank’s Guide to IFRS” (IMF project within the Financial Sector Reform and Strengthening Initiative (FIRST)). In the National Bank of Ukraine, she oversees accounting and financial reporting methodology of commercial banks and NBU, NBU accounting and preparation of financial statements, tax accounting and accounting control procedures.

Agenda

Introduction to central bank balance sheets

Role of the central bank balance sheet as the ultimate means of settlement
Charting the evolution of central bank balance sheets
Types of assets and liabilities composing the balance sheet
How balance sheet structure differs in response to crisis and to fulfil policy objectives
Communicating the balance sheet: publication and public perception

IFRS principles and the central bank balance sheet

Understanding how the IFRS principles apply in the context of central banks
Overview of key IFRS implementation challenges
Exploring the new IFRS standards and their implications, e.g., IFRS 18; amendments to IFRS 9 and IFRS S1 and S2

Managing profit retention, distribution and revaluation

How central bank equity differs from that of commercial entities
Approaches to profit retention and distribution
Mitigating revaluation risk: realised vs unrealised gains
Link between accounting frameworks and financial strength

‘Solvency’ for central banks

What does central bank solvency look like?
Technical insolvency vs policy insolvency
Operating with negative capital levels: effects and examples
Overview of loss coverage and recapitalisation arrangements
Relationship between the central bank and the treasury

Learning objectives

Explain the role, history and evolution of central bank balance sheets, and how their structure has developed in response to shifting financial market conditions.

Analyse the composition of central bank assets and liabilities to determine how balance sheet structure adapts during periods of crisis to support policy goals.

Apply IFRS principles to central bank accounting practices, including new standards and their implications on the clarity and quality of financial reporting.

Assess approaches to profit retention, distribution, and revelation, and their role in reinforcing central bank credibility and independence,

Evaluate central bank solvency and financial strength, distinguishing technical from policy insolvency, and identifying mechanisms that support balance sheet resilience.