The above figure shows the balance sheet of four major central banks from 2005 to 2015. Above the horizontal axis is the asset side of the balance sheet, below is the liability side. All four central banks financed their purchases via overnight interest-paying voluntarily-held deposit by financial institutions at the central bank, i.e. reserves.
Source: “Funding Quantitative Easing to Target Inflation” by Ricardo Reis
Last updated: April 1, 2026
