Key Facts on Central Bank Balance Sheets in Asia and the Pacific

Central bank balance sheets have been expanding rapidly over the past decade in emerging Asia, due to the unprecedented rise in foreign reserve assets. We outline the changes in the composition of both assets and liabilities on central bank balance sheets in the region, and the factors that have contributed to these changes. We summarise the macroeconomic and financial stability risks that large central bank balance sheets may pose for the region, and discuss the modelling challenges in developing a conceptual framework to address the effects of large balance sheets. Full publication: "http://ssrn.com/abstract=2166373" Are Central Bank Balance Sheets in Asia Too Large?