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Assets and Liabilities Management for Central Banks

In: Central Bank Reserves and Sovereign Wealth Management

Author

Listed:
  • Urmila Kisoen

Abstract

For a central bank to fulfill its key role in maintaining price stability and to fulfill its policy functions in the field of financial stability it is paramount to have a good measure of financial independence, giving it credibility as a critical partner in political decision-making. The current financial turmoil shows the importance of a strong central bank being able to take emergency measures when necessary to enhance financial stability and the smooth functioning of money markets. To achieve these public tasks it is desirable to hold a sustainable capital buffer.

Suggested Citation

  • Urmila Kisoen, 2010. "Assets and Liabilities Management for Central Banks," Palgrave Macmillan Books, in: Arjan B. Berkelaar & Joachim Coche & Ken Nyholm (ed.), Central Bank Reserves and Sovereign Wealth Management, chapter 4, pages 103-139, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-25081-9_4
    DOI: 10.1057/9780230250819_4
    as

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