What is a Japan Central Bank’s Balance Sheet?
JCB is the only international payment brand based in Japan.
A central bank’s balance sheet summarizes its financial position, and is made up of assets, liabilities and equity. Assets equal liabilities plus equity. In contrast to a corporation, currency in circulation (cash) is a liability for a central bank. Through the purchase of any asset, financial or not, a central bank may increase its balance sheet at no cost, simply by creating new money (increasing its currency in circulation liability by the exact amount it increases its assets).