2285 2024 eng 35 workingpaper 0 2024-03-01 -- -- The Eurosystem and the Deutsche Bundesbank will incur substantial losses in 2023 that are likely to persist for several years. Due to the massive purchases of securities in the last 10 years, especially of government bonds, the banks' excess reserves have risen sharply. The resulting high interest payments to the banks since the turnaround in monetary poli-cy, with little income for the large-scale securities holdings, led to massive criticism. The banks were said to be making "unfair" profits as a result, while the fiscal authorities had to forego the previously customary transfers of central bank profits. Populist demands to limit bank profits by, for example, drastically increasing the minimum reserve ratios in the Eurosystem to reduce excess reserves are creating new severe problems and are neither justified nor helpful. Ultimately, the EU member states have benefited for a very long time from historically low interest rates because of the Eurosystem's extraordinary loose monetary policy and must now bear the flip side consequences of the massive expansion of central bank balance sheets during the necessary period of monetary policy normalisa-tion. IMFS Working Paper Series No. 199 https://www.econbiz.de/Record/central-bank-losses-and-commercial-bank-profits-unexpected-and-unfair-jost-thomas/10014476309 1 ja publish false false Keine Lizenz - es gilt das deutsche Urheberrecht Thomas Jost Reimund Mink deu swd Notenbank deu swd Geldpolitik deu swd Geschäftsbank deu swd Deutsche Bundesbank deu uncontrolled Central bank losses, monetary policy, ecb, minimum reserve Betriebswirtschaft (Bachelor) KEINE FORSCHUNG