A look at Bank of England Balance Sheet

Paul Fisher of Bank of England explains in details about Bank of England balance sheet.

Paul Fisher notes that the Bank of England’s support for the economy had been “truly, historically massive – both in terms of liquidity insurance and operations and monetary policy.” The balance sheet had expanded to as large a size as at any time in the past two hundred years, and the pace of change had been “unprecedented”.

At some point, he says, the Bank’s balance sheet will return to something approaching its former composition, and perhaps size, with the temporary operations being time-limited, or have price disincentives for use in normal conditions. But the innovations introduced during the crisis will leave the Bank better prepared to deal with stresses in future. Paul Fisher notes that the Sterling Monetary Framework is used to set monetary policy and to provide liquidity insurance to the banking sector but it “…cannot provide medium-term funding for banks to carry out lending.”

What was once an esoteric topic meant for academicians, has become so important. Central Bankers are taking a lot of pains to explain the idea to the public.

I had earlier pointed to a comparison of Fed, Euroarea and Bank of Japan balance sheets. Add this speech to get a feel of Bank of England as well.

2 Responses to “A look at Bank of England Balance Sheet”

  1. Riksbank Balance sheet expansion and were negative interest rates useful? « Mostly Economics Says:

    […] All central bankers are busy explaining how they used their balance sheets in this crisis. See Bank of England, Fed, Comparison between Fed, Bank of England and Bank of Japan and other posts on the topic […]

  2. Lån penge Says:

    Lån penge…

    […]A look at Bank of England Balance Sheet « Mostly Economics[…]…

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