Central banks are expected to save the world. Other countries enjoy additional sources of income: Central banks in South Korea and France pay corporate taxes in addition to dividends. It’s gotten complicated in Japan, for example, where the central bank’s massive stimulus hit the dividend. South Africa’s central bank, too, opted to use a surplus to replenish its contingency reserves. Yet as the government looks for cash to recapitalize public-sector banks saddled with bad loans, it has floated the idea of tapping the central bank’s emergency funds.

Source: Mint September 06, 2016 04:41 UTC