Central bank Losses. An Economic and Accounting Perspective Using the Example of the Czech National Bank

Bibliographic Data

ID6109037
AuthorsMartin Mandel (0000-0002-7228-3092, Topcon (Netherlands)), Vladimír Zelenka (Topcon (Netherlands))
Year2009
Volume57
Issue6
Pages723-739
Publication date2009-12-01
Open AccessYes
TypeARTICLE
VenuePolitická ekonomie (JOURNAL)
Journal identifiersISSN: 0032-3233 • E-ISSN: 2336-8225
PublisherPrague University of Economics and Business (PUBLISHER • CZ)
DOI10.18267/j.polek.706
OpenAlexW2183874920
LanguageEN
Citations received1
References cited12

The first question that we ask ourselves in our article is whether the accounting of the central bank is supposed to respect the principles of internationally accepted standards (especially the International Financial Reporting Standards). We are looking for the basic differences in understanding of terms such as (il)liquidity and (in)solvency on the level of central and commercial banking. We analyze the economic reasons for origination of the long foreign exchange position of the Ä NB which, under the circumstances of trend appreciation of the exchange rate of the Czech crown, is leading to a cumulative loss. We are discussing whether the current level of foreign exchange reserves of the Ä NB is excessive or adequate. Special attention is paid to the monetary and financial impact of the loss of the central bank. We are pointing out that losing the central bank means profit for market subjects at the same time. It is not just a "fictitious" accounting problem and it can have its factual impact on the national economy. At the end we are summarizing and assessing the individual opinions regarding the loss of the Ä NB

Central bank · Czech · Economics · Financial system · Macroeconomics · Monetary policy · National accounts · National bank · Perspective (graphical) · Accounting · Economic and Fiscal Studies · European Monetary and Fiscal Policies · Global Financial Crisis and Policies

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