Central Bank Balance Sheet Management for Banking Services

The central bank's balance sheet is not merely an accounting document but a powerful policy tool that underpins all banking, liquidity, and monetary operations. This course offers a deep dive into how central banks actively manage their balance sheets to provide essential services to commercial banks and the government, beyond their core monetary policy functions. It examines the operational impact of reserve requirements, standing facilities, foreign exchange interventions, and the provision of collateralized credit. Participants will gain a technical understanding of the asset and liability side of the balance sheet, the mechanisms through which banking services are delivered, and the critical trade-offs between liquidity provision, risk control, and achieving policy objectives. The course also addresses the impact of unconventional policies and the evolving role of the balance sheet in a modern financial system.