Category Archive: 1) SNB and CHF
SNB Increases Weight of Countercyclical Capital Buffer for Banks
The SNB requires banks to raise the weight of the counter-cyclical capital buffers” (CCB) by holding extra capital worth 1 per cent of the risk-weighted assets in their mortgage portfolios.
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SNB Balance Sheet Expansion
Since 2008 the balance sheet of the Swiss National Bank is 280% higher, this is the equivalent of 60% of Swiss GDP. So did most other central banks, too. But there is one big difference: The risk for the SNB is far higher, the SNB nearly exclusively possesses assets denominated in volatile foreign currency.
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Swiss National Bank Monetary Policy Mandate – 2007 version vs. today
The mandate of the Swiss National Bank is concentrated on price stability, i.e. less than 2% inflation and to avoid deflation.
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ECB rate cut creates complex situation for SNB
Says Thomas Jordan.
Need to wait to assess impact of ECB rate cut
Wasn’t totally surprised by the cut
Interest rates will remain low in Switzerland
Low rates may lead to property bubble risk which SNB will respond to if necessary
SNB monitoring property market which is already in difficult situation
I did wonder about the lack of movement in EUR/CHF yesterday considering that nearly every other euro pair took a hit. It’s either become the...
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Weekly Newspaper on Swiss National Bank and Swiss Franc
Feel free to click into the other categories “politics”, “business”, #chf, #snb in order to see more articles.
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In Which Positions Does the SNB Win and Where Does it Lose Money: Details on the Q3 Results
UPDATE October 31, The official press release focused on the results for Q1 to Q3. The loss was 6.4 billion after a 7.3 bln. CHF loss in the first two quarters. Over all three quarters especially gold and the yen weakened the central bank’s positions. For the third quarter, it means that income was positive … Continue reading »
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Weekly Newspaper on Swiss National Bank, Edition October 28
The SNB recently published the latest real effective exchange rate (REER). According to that the franc was only 7% overvalued against the base year 1999. Credit Suisse (CS) has taken some more factors than the REER under consideration: for them the fair value of the EUR/CHF is now 1.22, while the dollar was still undervalued. …
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SNB’s Jordan Responds to the Critique from the Peterson Institute: What They Forgot to Ask Him …
SNB's Jordan Responds to the Critique from the Peterson Institute: What They Forgot to Ask...
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No SNB Intervention: Massive Swiss M0 Increase due to Post Finance Transformation into a Bank
SNB did not intervene. Deposits of Swiss Post Finance had been reclassified from other sight liabilities to deposits of domestic banks.
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Danthine: SNB would end franc cap once it raises interest rates
It was obvious already at the latest SNB Monetary Policy Assessment, the SNB is becoming more and more hawkish. At the forefront is its ueber-hawk Jean-Pierre Danthine, the person responsible for the overheating Swiss housing market. He has now announced: SNB would end franc limit once it raises interest rates The Swiss National Bank will …
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Debt Reduction, the new Financial Cycle, an Important Driver of EUR/CHF
In this analysis we describe why the long-lasting financial cycle of debt reduction is one key driver of the EUR/CHF exchange rate. We claim that EUR/CHF can rise more strongly only when the competitiveness of the European periphery increases. When this happens, then debt will be reduced and both public and private deficit spending will stop.
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A Nationalization of Swiss Foreign Assets? SNB Owns 56% of Swiss Net International Investment Position
The SNB currently owns 56% of the Swiss net international investment position (“NIIP”). In the year 2007 this number was only 12%. Is the central bank implicitly nationalizing the Swiss international companies?
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