by The SNB has published its annual report. Some highlights from the summary: Climate risks and adjustments to climate policy can trigger or amplify market fluctuations and influence the attractiveness of investments. From an investment perspective, such risks are essentially no different from other financial risks. The SNB manages the risks to its investments by means of its diversification strategy. … A prerequisite for illiquid assets to be used as collateral in obtaining liquidity assistance is that a valid and enforceable security interest in favour of the SNB can be established on these assets. Otherwise, should the loan not be repaid, the SNB would be unable to realise the collateral. A decisive factor for the usability of assets is that the banks have made the necessary
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Dirk Niepelt considers the following as important: Climate Change, Credit Suisse, Lender of last resort, Liquidity support, Notes, Swiss National Bank
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The SNB has published its annual report. Some highlights from the summary:
Climate risks and adjustments to climate policy can trigger or amplify market fluctuations and influence the attractiveness of investments. From an investment perspective, such risks are essentially no different from other financial risks. The SNB manages the risks to its investments by means of its diversification strategy. …
A prerequisite for illiquid assets to be used as collateral in obtaining liquidity assistance is that a valid and enforceable security interest in favour of the SNB can be established on these assets. Otherwise, should the loan not be repaid, the SNB would be unable to realise the collateral. A decisive factor for the usability of assets is that the banks have made the necessary preparations. …
The crisis at Credit Suisse highlighted weaknesses in the regulatory framework. Banks’ resilience and their resolvability in a crisis should therefore be strengthened. At the same time, the current ‘too big to fail’ (TBTF) regulations should be reviewed to ensure that they take adequate account of the systemic importance of individual banks. In particular, the SNB recognises a need for action in the areas of early intervention, capital and liquidity requirements, and resolution planning. It is participating at both national and international level in the ongoing debate about regulatory adjustments.
In 2023, the SNB presented its ‘Liquidity against Mortgage Collateral’ (LAMC) initiative to the public. Banks of all sizes can find themselves in a situation where they need significant amounts of liquidity quickly despite having precautions in place that comply with regulations. The aim of the LAMC initiative is to ensure that, should the need arise, the SNB will in future be able to provide liquidity against mortgage collateral to all banks in Switzerland that have made the requisite preparations. This possibility was already available to systemically important banks. Preparatory work for this initiative started in 2019. …
Employees from the BIS and the SNB continued their research activities at the BIS Innovation Hub Swiss Centre. Work focused on technologies for tokenising assets and on the analysis of large volumes of data. …
At the invitation of the Indian G20 presidency, Switzerland again participated in the Finance Track in 2023. In this forum, the SNB emphasised the importance of pursuing a monetary policy geared towards price stability and contributed its analyses of central bank digital currency and payment systems. …
The SNB introduced a new current account survey in order to better record the global production of multinational enterprises whose production and trade processes are distributed across various countries in Switzerland’s balance of payments statistics.