The strategic allocation and sustainability of central banks' investment

Davide Di Zio (), Marco Fanari (), Simone Letta (), Tommaso Perez () and Giovanni Secondin ()
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Davide Di Zio: Bank of Italy
Marco Fanari: Bank of Italy
Simone Letta: Bank of Italy
Tommaso Perez: Bank of Italy
Giovanni Secondin: Bank of Italy

No 14, Mercati, infrastrutture, sistemi di pagamento (Markets, Infrastructures, Payment Systems) from Bank of Italy, Directorate General for Markets and Payment System

Abstract: In recent years, the extensive recourse to unconventional monetary policy measures and the growing importance of the transition process towards a sustainable economy have given rise to new challenges for the Eurosystem’s central banks in managing financial risks. In this context, central banks’ investment strategies, whose goal is to reinforce capital strength, have been combined with the adoption of criteria aimed at fostering a sustainable growth model. This work describes the strategic allocation process for investment developed by the Bank of Italy and the methodology adopted for applying sustainability criteria to some of the portfolio’s asset classes.

Keywords: central banks; investment allocation; sustainability; Bayesian VAR (search for similar items in EconPapers)
JEL-codes: E58 G11 G17 Q56 (search for similar items in EconPapers)
Date: 2021-12
New Economics Papers: this item is included in nep-ban, nep-cba, nep-env, nep-mac and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wpmisp:mip_014_21

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