Reading the indicators: the Bank of Japan balance sheet in its ten-day accountsA look inside the Bank of Japan's pockets
On October 22 the Bank of Japan published its accounts as at October 20, 2026. Total assets and total liabilities and net assets were both about JPY 625 trillion. On the asset side Japanese government bonds account for about JPY 504 trillion; on the liability side current deposits account for about JPY 418 trillion and banknotes issued for about JPY 114 trillion. This article works through how to read a central bank balance sheet using the published figures.
Key points
- Main assets as at October 20, 2026: Japanese government bonds about JPY 504 trillion, loans about JPY 68 trillion, money held in trust (index-linked exchange-traded funds) about JPY 37 trillion, foreign currency assets about JPY 12 trillion, corporate bonds about JPY 1.0 trillion, gold about JPY 0.44 trillion
- Main liabilities and net assets: current deposits about JPY 418 trillion, banknotes issued about JPY 114 trillion, other deposits about JPY 42 trillion, payables under repurchase agreements about JPY 31 trillion, deposits of the government about JPY 4.3 trillion
- Total assets and total liabilities and net assets agree at JPY 624,977,993,815 thousand (the original figures are stated in thousands of yen)
- The key to reading it: in general, when a central bank buys government bonds its assets grow, and the money paid for them builds up on the liability side as the current deposits that financial institutions hold at the central bank. That correspondence is why bonds on the asset side and current deposits on the liability side are both large
What to do in practice
- When reading news about interest rates or monetary policy, also check the size of the Bank of Japan's assets (government bonds) and liabilities (current deposits)
- The original figures are in thousands of yen, so confirm the unit to avoid misreading the order of magnitude
The Bank of Japan issues banknotes and buys the certificates the state issues when it borrows money, called government bonds. In the report published on October 22, the total of what it holds and the total of what it has taken in were both about JPY 625 trillion. Most of what it holds is government bonds, and most of what it has taken in is money deposited by banks.
Points
- The largest thing it holds (assets) is government bonds, about JPY 504 trillion
- The largest thing it has taken in (liabilities) is the money banks keep at the Bank of Japan, about JPY 418 trillion. The banknotes we use come to about JPY 114 trillion
- The total of what it holds and the total of what it has taken in are both the same, about JPY 625 trillion
What the words mean
- Government bond
- A certificate the state issues when it borrows money
- Current deposits
- Money that banks keep at the Bank of Japan
- Banknotes issued
- The paper money put out by the Bank of Japan
Economic news presents published statistics and outlooks. It is not investment solicitation or trading advice. Figures are as of publication and may be revised.
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.