Wednesday , November 27 2024
Home / SNB & CHF / Swiss National Bank agrees to pay out 1 billion francs annually

Swiss National Bank agrees to pay out 1 billion francs annually

Summary:
Today, the Swiss National Bank (SNB) announced a new agreement with the Federal Department of Finance, to pay the Swiss confederation and cantons CHF 1 billion per year, as was previously the case. The deal will run from 2016 to 2020, according to an official press release. © Phillip Judd The deal differs from the past because it requires shortfall payments. In years when the SNB doesn’t have enough reserves, the payment can be reduced and any shortfall made up in following years. If reserves exceed CHF 20 billion, the annual payout can rise to a maximum CHF 2 billion. Switzerland’s central bank’s shares are listed on the Swiss stock exchange. Its shareholders include Swiss cantons, Swiss cantonal banks, and numerous private individuals. At the end of 2015, cantonal banks and cantons owned around 52%, with the cantons of Bern (6.6%), Zurich (5.2%), Vaud (3.4%), and St. Gallen (3%), holding the largest shares. The largest personal holding was held by German national Theo Siegert (6.6%).

Topics:
Investec considers the following as important: , ,

This could be interesting, too:

Eamonn Sheridan writes CHF traders note – Two Swiss National Bank speakers due Thursday, November 21

Charles Hugh Smith writes How Do We Fix the Collapse of Quality?

Marc Chandler writes Sterling and Gilts Pressed Lower by Firmer CPI

Michael Lebowitz writes Trump Tariffs Are Inflationary Claim The Experts

Today, the Swiss National Bank (SNB) announced a new agreement with the Federal Department of Finance, to pay the Swiss confederation and cantons CHF 1 billion per year, as was previously the case. The deal will run from 2016 to 2020, according to an official press release.

Swiss National Bank agrees to pay out 1 billion francs annually

© Phillip Judd

The deal differs from the past because it requires shortfall payments. In years when the SNB doesn’t have enough reserves, the payment can be reduced and any shortfall made up in following years. If reserves exceed CHF 20 billion, the annual payout can rise to a maximum CHF 2 billion.

Switzerland’s central bank’s shares are listed on the Swiss stock exchange. Its shareholders include Swiss cantons, Swiss cantonal banks, and numerous private individuals. At the end of 2015, cantonal banks and cantons owned around 52%, with the cantons of Bern (6.6%), Zurich (5.2%), Vaud (3.4%), and St. Gallen (3%), holding the largest shares. The largest personal holding was held by German national Theo Siegert (6.6%).

More on this:
Swiss National Bank press release – opens PDF (in English)
2015 SNB shareholders (in French)

About Investec
Investec
Investec is a distinctive Specialist Bank and Asset Manager. We provide a diverse range of financial products and services to our niche client base.

Leave a Reply

Your email address will not be published. Required fields are marked *