Are central banks insolvent?


TS Lombard with the note:

  • Central banks are now making losses, following a decade of highly profitable QE
  • While losses do not interfere with monetary policy, they are politically problematic
  • The main implications are fiscal, but officials will fear for their independence


Central banks are suddenly making large losses, fuelling talk that they are “insolvent”. But these institutions cannot go bankrupt and good monetary policy is not a matter of turning a profit.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.