Balance Sheet Normalization

Balance Sheet Normalization

The practice of returning a balance sheet to its usual size. For example, if a company has taken on an unusual amount of debt to pay for a special circumstance, balance sheet normalization may involve repaying the debt in short order. For instance, it may not renew bonds when they mature.
References in periodicals archive ?
Reversing QE through balance sheet normalization will put upward pressure on interest rates," which, Bullard noted, is a complication that was not present previously.