Tag Archives: Swiss National Bank

The increasing volatility of SNB Earnings Annual results are not really definite. Given that the SNB accumulates foreign currencies with interventions, they have huge swings. But the SNB may lose 50 billion in one year and win 60 billion in the next year or vice verse. Good years of the Credit Cycle This trend was stopped in 2016, even without the need for a cap on the franc. But one should consider that we are in the...

Despite a record of federal budget surpluses, don’t count on fiscal policy to relieve pressure on the SNB The Swiss federal budget is governed by a strict expenditure rule, which is enshrined in the Constitution. Since its introduction, the ratio of public debt-to-GDP has been significantly reduced, falling back to its early-90’s level. At the close of 2018, the Swiss federal budget registered a significant surplus of...

Despite a record of federal budget surpluses, don't count on fiscal policy to relieve pressure on the SNBThe Swiss federal budget is governed by a strict expenditure rule, which is enshrined in the Constitution. Since its introduction, the ratio of public debt-to-GDP has been significantly reduced, falling back to its early-90’s level. At the close of 2018, the Swiss federal budget registered a significant surplus of CHF 2.9 billion, compared with budget projections for a surplus of CHF 295...

NZZ, March 13, 2019. PDF. Long-term real interest rates do not reflect monetary policy. In the recent past, monetary policy has contributed to lower fixed-income interest rates but also to higher returns on other asset classes. Complaining about low rates but not adjusting one’s portfolio makes little sense; there is no “financial repression.” If politicians want to subsidize pension funds they should contribute funds from the government budget rather than asking the central bank to...

NZZ, March 13, 2019. PDF. Updated: Ökonomenstimme, March 22, 2019. HTML. Long-term real interest rates do not reflect monetary policy. In the recent past, monetary policy has contributed to lower fixed-income interest rates but also to higher returns on other asset classes. Complaining about low rates but not adjusting one’s portfolio makes little sense; there is no “financial repression.” If politicians want to subsidize pension funds they should contribute funds from the government...

Overview The SNB earned 2 billion on negative interest rates, but lost nearly 17 billion CHF on FX investments, of which 5 bn on bonds and 12 bn on stocks. The increasing volatility of SNB Earnings Annual results are not really definite. Given that the SNB accumulates foreign currencies with interventions, the results have huge swings that depends on the FX rate. But the SNB may lose 50 billion in one year and win 60...

An ihrer ersten Sitzung im neuen Jahr hat die Europäische Zentralbank (EZB) ihren Kurs bestätigt. Das Wertschriftenkaufprogramm ist definitiv beendet. Fortan kauft sie netto keine zusätzlichen Anleihen mehr zu. Sondern sie ersetzt nur noch die bestehenden Papiere, die sie in ihrem Portefeuille hält. Läuft eine Anleihe aus, erwirbt sie mit den Mitteln vergleichbare Anleihen, mehr nicht. Der Unterschied: Bisher druckte...

In a press release the Swiss National Bank explains that it grants access to … [fintechs] that make a significant contribution to the fulfilment of the SNB’s statutory tasks, and whose admission does not pose any major risks. Entities with fintech licences whose business model makes them significant participants in the area of Swiss franc payment transactions will therefore be granted access to the SIC system and to...

In a press release the Swiss National Bank explains that it grants access to … [fintechs] that make a significant contribution to the fulfilment of the SNB’s statutory tasks, and whose admission does not pose any major risks. Entities with fintech licences whose business model makes them significant participants in the area of Swiss franc payment transactions will therefore be granted access to the SIC system and to sight deposit accounts. The Swiss Financial Market Supervisory...

In a press release the Swiss National Bank explains that it grants access to … [fintechs] that make a significant contribution to the fulfilment of the SNB’s statutory tasks, and whose admission does not pose any major risks. Entities with fintech licences whose business model makes them significant participants in the area of Swiss franc payment transactions will therefore be granted access to the SIC system and to sight deposit accounts. The Swiss Financial Market Supervisory...