Diego Caballero Orduna, Bernd Schwaab, 30 September 2019

A bank’s balance sheet lists its assets, liabilities and shareholder equity, each of which is subject to risk. This column uses the examples of the announcement of the ECB’s Outright Monetary Transactions programme and the first very-long-term refinancing operation allotment to show that, in exceptional circumstances, a central bank can remove illiquidity-related credit risk from parts of its balance sheet by extending the scale of its operations.

Hélène Rey, 13 August 2018

Hélène Rey, Professor of Economics at London Business School and CEPR Fellow, explains how credit booms develop, what their mechanics are and how the financial intermediaries involved take on different amounts of risk.

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