BIS study asks whether central bank crisis actions de-risk the balance sheet

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European Central Bank at night

The study finds some ECB policies were particularly “risk efficient”

A recent study by the Bank for International Settlements seeks empirical support for the idea that central banks’ crisis actions may actually cut the overall risks on their balance sheet, even if the individual operations seem highly risky.

In the working paper, authors Diego Caballero, André Lucas, Bernd Schwaab and Xin Zhang test the theory – which harks back as far as the 19th century – on recent data relating to actions taken in the Eurosystem from 2009–15.

The theory, propounded by



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