European Parliament Library

Central Bank Losses and Experiences in Selected Countries, Claudia Dziobek, John Dalton

Contributor
Abstract
Under normal circumstances, a central bank should be able to operate at a profit with a core level of earnings derived from seigniorage. Losses have, however, arisen in several central banks from a range of activities including monetary operations under extreme conditions and financial sector restructuring. The paper discusses the impact of losses on central bank operations and lays out the principles and practices for handling central bank losses. It is suggested that losses should be disclosed as a reduction of the central bank's net worth unless covered by the government. Governments may cover losses through recapitalization of the central bank, and this will create a new central bank asset, usually in the form of government securities held by the central bank. Six case studies illustrate the circumstances under which losses may arise, their coverage, and central banks' disclosure practices
Table Of Contents
""Contents""; ""INTRODUCTION""; ""I. IMPLICATIONS OF LOSSES FOR CENTRAL BANK POLICY AND TRANSPARENCY""; ""II. FACTORS AFFECTING CENTRAL BANK PROFITS AND LOSSES""; ""III. SPECIFIC LOSS EXPERIENCES""; ""IV. ACCOUNTING PRINCIPLES FOR THE TREATMENT OF CENTRAL BANK LOSSES""; ""V. LEGISLATIVE PRACTICES FOR COVERAGE OF CENTRAL BANK LOSSES""; ""REFERENCES""
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (14 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9786613824370

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