As part of its contribution to the stability of the financial system, the Swiss National Bank acts as lender of last resort. In this role, it makes emergency liquidity assistance available to banks when, in crisis situations, they need substantial liquid funds which they are no longer able to obtain on the market.
The SNB provides this liquidity assistance in the form of secured loans. It accepts a broad range of collateral for this – in particular also illiquid assets. The aim is for banks to be able to obtain as much liquidity as possible from the SNB should the need arise.
Until now this liquidity assistance has been prepared with all systemically important banks. It is now being expanded to allow all banks to obtain liquidity assistance against mortgages when needed – provided they prepare their collateral for this. Failure to prepare can severely restrict the volume of liquidity assistance available. It is therefore important going forward that banks prepare enough collateral for transfer.
However, even if they prepare well, it is possible that their collateral might not be sufficient to cover their liquidity needs. It is in such extreme situations – when even the SNB’s emergency liquidity assistance is not enough – that the proposed public liquidity backstop (PLB) currently being discussed by parliament should take effect. This allocation of functions is international practice and tallies with the tried-and-tested division of roles between the SNB and the Confederation.
Full story here Are you the author?You Might Also Like
2023-11-09 – Thomas Moser: Implementing monetary policy with positive interest rates and a large balance sheet: First experiences
2023-11-09
In September 2022, the Swiss National Bank (SNB) raised its policy rate back into positive territory. At the same time, it adopted a new approach to implementing monetary policy in the money market. This approach employs two levers: the tiered remuneration of reserves, also referred to as reserve tiering, and reserve absorption.
How Washington Hawks Helped Create the New “Axis of Evil”
2023-11-08
In 2002, President George W. Bush cited the now famous “axis of evil”—Iraq, Iran, and North Korea—as he tried to get the American people to look beyond those responsible for the 9/11 attacks and greenlight a global military campaign to “rid the world of the evil-doers.”
The result was the $8 trillion global war on terror that continues to this day.
Now, in the wake of the Hamas attacks in southern Israel one month ago, the same language is being employed to justify another massive increase in military spending. In a series of statements and interviews, Senate minority leader Mitch McConnell defined a new axis of evil—Russia, China, and Iran—and argued the United States must simultaneously confront the threats posed by all of these regimes.
In his interview with Fox News, McConnell
The Federal Reserve is Running Losses. Does This Cost Anyone Anything?
2023-11-07
Financial statements of the US Federal Reserve, which consists of the board of governors in Washington and twelve district reserve banks across the country, indicate that the consolidated system has generated both capital and operating losses for the past couple of years. The Fed was created in 1913 to issue and circulate an “elastic currency” that could respond to consumers’ demand for cash, end bank runs known then as “money panics,” and serve as a “lender of last resort” to the nation’s commercial banks. How is it possible that the Fed could be losing money after one hundred years of operation?
The debate has raged in the banking and finance communities. Two investigators, Paul Kupiec at the American Enterprise Institute and Alex Pollock at the Mises Institute, have analyzed Fed
Weniger SNB-Zinsen: UBS entgehen wohl 135 Millionen Dollar Einnahmen
2023-11-03
Mit der verringerten Verzinsung von Sichtguthaben bei der Schweizerischen Nationalbank (SNB) dürften der UBS Einnahmen in Höhe von 135 Millionen Dollar entgehen.
USD/CHF Price Analysis: Golden cross loom, bulls hopeful target 0.9100
2023-11-03
Share:
USD/CHF finds support at 0.9010, with buyers lifting pair to 0.9057 in late North American session.
‘Golden cross’ formation of 50-day moving average crossing above 200-day moving average opens door for bullish resumption.
Sellers must push prices below 0.9000 mark and reclaim latest cycle low at 0.8887 to maintain control.
The USD/CHF finds some support at around the 0.9010 area, though it failed to print a green day on Thursday after market participants speculated the Federal Reserve isn’t raising rates again. However, buyers entered the market late in the North American session and lifted the pair to current exchange rates at 0.9057, almost flat as the Asian
Economic Calculation Is Nonbinary
2023-08-07
One of Ludwig von Mises’s important contributions to economics was demonstrating the impossibility of economic calculation under socialism. He did it by showing three necessary preconditions for the generation of meaningful market prices in the factors of production—private property, freedom of exchange, and sound money. Since socialism would, by definition, socialize the factors of production, there would be no nonarbitrary and meaningful way to calculate the prices of various factors of production, the costs of alternative plans in money prices, and expected future profits of a given plan minus the costs.
In short, when factors of production—producer goods (tools, machines, etc.)—are privately owned, there is freedom to trade property. When the economy has advanced to using money, which
Habecks Plan bringt die Regierung zum beben!
2023-08-05
Der Ökosozialismus nimmt weiter an Fahrt auf und es gibt keine Aussicht auf Besserung, so lange die Ampel in der Regierung bleibt!
💰 Meine Aktiendepot Empfehlung mit bis zu 3,6 % für Einlagen in EUR
Bis zu 5,8 % für Einlagen in USD https://link.aktienmitkopf.de/Depot *
Bildrechte: By Sandro Halank, Wikimedia Commons, CC BY-SA 4.0, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=113153461
👉🏽5 Euro Startbonus bei Bondora ►► https://goo.gl/434rmp *
📊 Tracke deine Dividenden mit dieser App http://myfinances24.de/mydividends24
📒 Mein Buch! Der Rationale Kapitalist ►►http://amzn.to/2kludNT
🎧JETZT auch als Hörbuch bei Audible ►► https://goo.gl/iWvTRR
Haftungsausschluss: Anlagen in Wertpapieren und anderen Finanzinstrumenten bergen immer das Risiko des Verlustes Ihres Kapitals.
End of day technical look at the EURUSD, USDJPY, GBPUSD and USDCHF.
2023-08-03
Be aware. Be prepared for the new trading day
Tags: Featured,newsletter
