Central Bank Ratings: A New Methodology for Global Excellence

When the global financial crisis broke, central banks in both the US and the UK undertook massive asset purchase programmes which resulted in considerable increase in assets. Cross-border spillover effects were noted across global economies. Balance sheet adjustments may eventually gnaw at the profit-earning capacities of central banks, and in extreme cases, negative equity can manifest.

This study investigates a benchmark for comparing central banks. The author employs a unique and large s...