Tuesday , November 12 2024
Home / SNB & CHF / Why can’t the Swiss National Bank go bankrupt?

Why can’t the Swiss National Bank go bankrupt?

Summary:
Reuters The Swiss National Bank (SNB) will make a loss of CHF132 billion in 2022, and distribution of profits to the confederation and the cantons will be suspended. What does this mean for the stability of the SNB and what would happen if it faces another large loss? The SNB still has money. However, not quite as much as at the beginning of last year. Because of last year’s loss, its equity capital has fallen from CHF198 billion to CHF66 billion. In the event of another large loss, the SNB is threatened with over-indebtedness. What would that mean for the SNB? And why, from an economic point of view, could the SNB pay out a profit to the confederation and the cantons again this year? We clarify these questions in the latest Geldcast update. [embedded content]

Topics:
Swissinfo considers the following as important: , , , , ,

This could be interesting, too:

Frank Shostak writes Assumptions in Economics and in the Real World

Conor Sanderson writes The Betrayal of Free Speech: Elon Musk Buckles to Government Censorship, Again

Nachrichten Ticker - www.finanzen.ch writes Bitcoin erstmals über 80.000 US-Dollar

Nachrichten Ticker - www.finanzen.ch writes Kraken kündigt eigene Blockchain ‘Ink’ an – Neue Ära für den Krypto-Markt?

Why can’t the Swiss National Bank go bankrupt?

Reuters

The Swiss National Bank (SNB) will make a loss of CHF132 billion in 2022, and distribution of profits to the confederation and the cantons will be suspended. What does this mean for the stability of the SNB and what would happen if it faces another large loss?

The SNB still has money. However, not quite as much as at the beginning of last year. Because of last year’s loss, its equity capital has fallen from CHF198 billion to CHF66 billion. In the event of another large loss, the SNB is threatened with over-indebtedness.

What would that mean for the SNB? And why, from an economic point of view, could the SNB pay out a profit to the confederation and the cantons again this year? We clarify these questions in the latest Geldcast update.

The SWI swissinfo.ch Geldcast

Author Fabio Canetg completed his doctorate in monetary policy at the University of Bern and the Toulouse School of Economics. Today he is a lecturer at the University of Bern. As a journalist, he works for SRF Arena, Republik Magazin and SWI swissinfo.ch, where he hosts the monetary policy podcast “Geldcast”.


Tags: ,,
About Swissinfo
Swissinfo
SWI swissinfo.ch – the international service of the Swiss Broadcasting Corporation (SBC). Since 1999, swissinfo.ch has fulfilled the federal government’s mandate to distribute information about Switzerland internationally, supplementing the online offerings of the radio and television stations of the SBC. Today, the international service is directed above all at an international audience interested in Switzerland, as well as at Swiss citizens living abroad.

Leave a Reply

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