The BIS central bank total assets data set tracks the evolution of the size of central banks' balance sheets across the world. It covers more than 50 advanced and emerging market economies.
This data set contains long annual, quarterly and monthly series. The annual series feature an average length of around a century and, for most of the countries, show data since the establishment of the central bank. The median start year is 1942, and several series go back to the 19th century or earlier. Data with higher frequency often start later than annual series due to the limited availability of historical data.
Data on central banks' balance sheets originate from multiple sources. Financial statements or accounting balance sheets are typically the main source and are compiled in accordance with national accounting standards. Other sources include the monetary presentation or statistical balance sheets.
This paper looks at the relevance of a central bank's own finances for its policy work. Some central banks are exposed to significant financial risks, partly due to the environment in which they operate, and partly due to the nature of policy actions. While financial exposures and losses do not hamper central banks' operational capabilities, they may weaken the effectiveness of central bank policy transmission. Against this backdrop, the paper analyses the determinants of a central bank's financial position and the possible implications of insufficient financial resources for policymaking. It also provides a conceptual framework for considering the question of whether central banks have sufficient financial resources.
Central bank balance sheets have proved crucial in designing and pursuing policies in the wake of financial crises in recent years. Central banks have bought a wide range of financial assets in order to further major macroeconomic and financial stability objectives, which has implied a comparable increase in domestic liabilities. This has led to an unprecedented global expansion of central bank balance sheets. But balance sheets of the current size could create broad policy risks, beyond the increased exposure of the balance sheet to market developments. These risks include inflation, financial instability, distortions in financial markets, and conflicts with government debt managers. Analysing balance sheet-related risks can also help design suitable "exit strategies" from the current policies.
