Wealthiest central banks in world; RBI is at...

Central banks are essential to the global financial system, managing a country's monetary policy, controlling inflation, regulating the financial system, and ensuring the stability of the currency. By setting interest rates and managing reserves, they influence economic activity and keep financial markets functioning smoothly. They also act as a lender of last resort to commercial banks and other financial institutions during economic distress.

The Reserve Bank of India (RBI), India's central banking institution, ranks 12th among the world's central banks by total assets, according to the Sovereign Wealth Fund Institute (SWFI). Central banks' assets typically include foreign exchange reserves, gold reserves, and government bonds. The top 10 wealthiest central banks globally are known for their significant asset bases, reflecting their substantial influence on global economics and finance.

A central bank’s total assets provide insights into the economic outlook of its country. The assets, detailed in the central bank’s balance sheet, are a key indicator of national economic health. In the fiscal year 2024 (FY24), the RBI’s balance sheet grew by 11.07%, reaching Rs 70.47 lakh crore compared to Rs 63.44 lakh crore in FY23. The RBI’s income rose to Rs 2.75 lakh crore, up 17.04% from Rs 2.35 lakh crore in the previous fiscal year, according to the central bank’s annual report.

The SWFI report highlights that the Federal Reserve System of the United States is the world’s richest central bank, with assets worth $7.84 trillion. European central banks dominate the list, holding seven of the top ten positions and a combined worth of $11.09 trillion.

Here are the top 10 central banks in the world by total assets:

Federal Reserve System (USA) - $7.84 trillion
People’s Bank of China - $6 trillion
Bank of Japan - $5.54 trillion
Deutsche Bundesbank (Germany) - $2.78 trillion
Bank of France - $2.01 trillion
Norges Bank (Norway) - $1.63 trillion
Bank of Italy - $1.38 trillion
Bank of England - $1.29 trillion
Bank of Spain - $1.05 trillion
Swiss National Bank - $944 billion

In the SWFI list of 100 central banks, the Bank of Ghana and the Central Bank of Paraguay are ranked 99th and 100th, respectively. This ranking underscores the varying economic strengths and assets managed by central banks worldwide.