The Swiss National Bank in Brief

The Swiss National Bank in Brief

Contents

2 The Swiss National Bank in Brief

 Introduction 5
1 The SNB’s mandate 6
2 Monetary policy strategy 9
3 Implementation of monetary policy 14
4 Ensuring the supply and distribution of cash 22
5 The SNB’s role in the cashless payment system 24
6 Asset management 27
7 The SNB’s contribution to financial stability 31
8 International monetary cooperation 37
9 Independence, accountability and relationship
with the Confederation 42
10 The SNB as a company 45
11 Legal basis 52

Appendix
1 SNB balance sheet 56
2 Information resources and publications 58
3 Addresses 61

The Swiss National Bank in Brief 3

4 The Swiss National Bank in Brief
Introduction

The Swiss National Bank is Switzerland’s central bank. It has the

exclusive right to issue banknotes (note-issuing privilege) and
has been mandated to conduct the country’s monetary policy. In
accordance with the Constitution and Swiss law, the SNB is
independent in the fulfilment of its mandate, holds regular discussions
with the Federal Council, is accountable to the Federal Assembly
and is obliged to provide the general public with periodic information
on its activities.

This brochure presents the key tasks and the organisation of the SNB.
Chapter 1 outlines the SNB’s mandate and history. Chapter 2 explains
the strategy that the SNB pursues to achieve its goal of ensuring
price stability and the considerations on which it bases its monetary
policy decisions. Chapter 3 explains which instruments the SNB uses
to put its monetary policy decisions into practice. Chapter 4 looks at
the SNB’s role in the supply and distribution of cash, while Chapter 5
focuses on its role in cashless payment systems. Chapter 6 deals
with the SNB’s assets, their functions and the principles by which
they are managed. Chapter 7 illustrates the ways in which the SNB
contributes to the stability of the financial system. Chapter 8 outlines
the international institutions and bodies in which the SNB is
represented. Chapter 9 explains the link between independence and
accountability, and the relationship between the SNB and the Swiss
Confederation. Chapter 10 describes how the SNB is structured and
includes its organisational chart. Chapter 11 summarises the legal
foundation on which the SNB’s activities are based.

The appendix provides a graphical representation of the balance

sheet, details of the SNB’s most important information resources
and publications, and a list of addresses.

This brochure is available in German, French, Italian and English

from the SNB library. It is also available, together with additional
information, on the SNB website at www.snb.ch.

The Swiss National Bank in Brief 5

 1
The SNB’s mandate

The SNB conducts the country’s monetary policy as an independent

central bank. Its mandate is to conduct monetary policy in such
a way that money preserves its value and the economy develops
favourably. This mandate is enshrined in the Constitution and the
National Bank Act (NBA). The Constitution (art. 99) obliges the
SNB, as an independent central bank, to conduct a monetary policy
that serves the interests of the country as a whole. The NBA
(art. 5 para. 1) describes the SNB’s mandate in more detail: ‘It shall
ensure price stability. In so doing, it shall take due account of
economic developments.’

Origin of central banks A well-organised, stable monetary system is an important prerequisite

for a prosperous economy. With the emergence of nation states, the
creation of money and the organisation of the monetary system were,
as a rule, assigned to a public institution, i.e. the central bank.

The origins of central banks vary from one country to another. Some
of the oldest central banks started out as state banks which granted
loans to the state and managed state assets. Others were set up to
enhance the stability of the banking system and prevent banking panics.

6 The Swiss National Bank in Brief

Other central banks, including the SNB, were successor organisations History of the SNB
to private money-issuing institutions. In the 19th century, there
were several cantonal and private banks in Switzerland which issued
banknotes in competition with one another. As the Swiss economy
was growing rapidly and becoming increasingly integrated into the
world economy, the interests of the private issuing banks corresponded
less and less to the requirements of the country’s economy as
a whole. This was reflected by, among other things, an inadequate
supply of banknotes. Calls for the creation of a central bank endowed
with the note-issuing privilege became increasingly vociferous,
and in 1891 an article was added to the Constitution stating that the
right to issue banknotes was the preserve of the Confederation alone.
However, another 15 years were to pass before the Federal Act on
the Swiss National Bank entered into force in early January 1906 as
prior to that, Swiss voters had rejected a proposal to establish a state
bank. In June 1907, the Swiss National Bank assumed its function
as an independent central bank.

At the time of the SNB’s foundation, the monetary order in most Changes in the
of the world was based on the fixed relationship between currencies monetary order
and gold. In this context, the SNB’s mandate was to regulate
the circulation of money and facilitate payment transactions. It was
obliged to provide gold on demand in exchange for banknotes.

The global economy has changed considerably since then. Gold no

longer plays the role of anchor in the international monetary system,
and the significance of banknotes has dwindled in comparison to
book money. What has remained unchanged, however, is the SNB’s
responsibility to conduct its monetary policy in a way that keeps
the value of money stable and enables the economy to prosper.

The Swiss National Bank in Brief 7

8 The Swiss National Bank in Brief
2
Monetary policy strategy

Price stability is an important prerequisite for growth and

prosperity. Inflation (a sustained increase in the price level) and
deflation (a sustained decrease in the price level) both impair
economic activity. They hinder the role of prices in allocating
labour and capital to their most efficient use, and result in
a socially undesirable redistribution of income and wealth.

In its monetary policy strategy, the SNB sets out the manner in Monetary
which it operationalises its statutory mandate. The strategy consists policy strategy
of three elements: a definition of price stability, a conditional
inflation forecast over the subsequent three years, and a description
of how the SNB implements its monetary policy by influencing
the interest rate level and the exchange rate.

Against the backdrop of the changes in the economic environment in Review of monetary
recent years, in 2022 the SNB subjected its monetary policy strategy policy strategy
to a comprehensive review, which concluded that the strategy has
fundamentally proved its worth. Only the formulation of the third
element has been adjusted. Having previously mentioned only
setting the SNB policy rate, the third element now explicitly provides
for the SNB to also use additional monetary policy measures to
influence the exchange rate or the interest rate level, if necessary.
With this adjustment, the SNB is taking into account the increased
importance of such measures in recent years.

The Swiss National Bank in Brief 9

Definition of The SNB equates price stability with a rise in the Swiss consumer
price stability price index (CPI) of less than 2% per annum. Deflation also breaches
the objective of price stability. With its definition of price stability,
the SNB takes into account the fact that it cannot steer inflation
precisely and that the CPI tends to overstate inflation slightly.

�������� ������
Year-on-year change in percent

–1

–2
07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Swiss consumer price index

Range consistent with price stability
Source(s): SFSO, SNB

Conditional inflation The inflation forecast published quarterly by the SNB serves as
forecast the main indicator for monetary policy decisions and is a key
element in its communications. The SNB’s inflation forecast is based
on the assumption that the SNB policy rate applicable at the time
of publication will remain constant over the forecast horizon. It is
therefore a conditional forecast that shows how the SNB expects
consumer prices to develop with an unchanged SNB policy rate.
This enables the public to gauge whether there will be a need for
monetary policy action in the future.

10 The Swiss National Bank in Brief

The inflation forecast published by the SNB cannot be compared
with those provided by commercial banks or research institutions, as
these generally factor in the interest rate adjustments they anticipate.

The forecast, which relates to the three subsequent years, reflects the
medium-term focus of monetary policy. With this approach, the
SNB takes account of the fact that output and prices react to monetary
policy stimuli with – at times considerable – lags. Besides the inflation
forecast, the SNB integrates a large number of indicators of domestic
and international economic and monetary developments and of
financial stability into its monetary policy decisions (cf. chapter 7).

The SNB maintains price stability by ensuring appropriate monetary Implementation

conditions. These are determined by the interest rate level and of monetary policy
the exchange rate. If the interest rate level rises or the Swiss franc
appreciates, this means a tightening of monetary conditions.
Conversely, an interest rate cut or Swiss franc depreciation amounts
to an easing of monetary conditions. The Swiss National Bank sets
the level of the SNB policy rate and communicates this in its
monetary policy decision. It seeks to keep the secured short-term
money market rates close to the SNB policy rate. The most
important secured short-term Swiss franc interest rate is SARON
(Swiss Average Rate Overnight).

If necessary, the SNB may also use additional monetary policy

measures – for instance, foreign exchange market interventions –
to influence the exchange rate or the interest rate level.

The Swiss National Bank in Brief 11

 Negative interest phase from 2015 to 2022
From January 2015 until September 2022, the SNB charged
negative interest on sight deposits held by banks and other
financial market participants at the SNB which exceeded a given
exemption threshold. The discontinuation of the minimum
exchange rate against the euro in January 2015 caused the Swiss
franc to appreciate. To make Swiss franc investments less
attractive, thereby easing upward pressure on the currency, the
SNB lowered its policy rate below zero. In an environment of
very low interest rates abroad, this created a certain interest rate
differential between the Swiss franc and other currencies.
Additionally, the SNB stressed that it was willing to intervene in
the foreign exchange market as necessary, in order to provide
appropriate monetary conditions and ensure price stability. The low
interest rate environment posed challenges for various economic
agents, notably banks and pension funds. From an overall economic
perspective, however, these challenges were clearly outweighed
by the benefits. Without negative interest, the SNB would not have
been able to ensure price stability and economic developments
would have been significantly less favourable. The phase of
negative interest ended with the decision in September 2022 to
increase the SNB policy rate from – 0.25% to 0.5%. Negative
interest will retain its importance among the SNB’s monetary
policy instruments in the future.

Role of interest rate An interest rate increase dampens the demand for goods and services.
As a result, there is a decline in the demand for labour and in the
utilisation of technical production capacity, and inflation falls.
Conversely, a reduction in interest rates stimulates aggregate demand,
which leads to an increase in the utilisation of production capacity
and a rise in inflation. If the interest rate level changes, and with it
the interest rate differentials between the major currency areas, this
influences the exchange rate.

12 The Swiss National Bank in Brief

Changes in the exchange rate, like changes in interest rates, have an Role of exchange rate
effect on the economy and inflation. While a depreciation of the
Swiss franc has a stimulating effect, an appreciation tends to have
a dampening effect on domestic economic activity and prices. An
independent monetary policy that is geared towards the objective
of price stability fundamentally requires flexible exchange rates.
Nevertheless, due to the influence of the exchange rate on monetary
conditions, the SNB intervenes in the foreign exchange market as
necessary. In so doing, it takes the overall currency situation into
consideration. Foreign currency purchases are particularly called for
when scope for interest rate cuts is limited and there is a risk of
Swiss franc appreciation causing sustained negative inflation or
deflation. Conversely, if the Swiss franc weakens, the SNB can sell
foreign currency in order to ensure price stability. Foreign exchange
market interventions can also serve to ensure orderly market
conditions in phases of high uncertainty.

The SNB conducts an in-depth monetary policy assessment in March, Quarterly assessments
June, September and December. Its monetary policy decision is
based on this assessment. The reasons for its decision are provided
in a press release, which also contains the conditional inflation
forecast. The SNB also holds a news conference to explain its
monetary policy. In addition, the SNB may take monetary policy
measures at any time between regular assessment dates if
circumstances so require. The background to the monetary policy
decision is described in the monetary policy report published
in the Quarterly Bulletin.

The Swiss National Bank in Brief 13

 3
Implementation of monetary policy

The SNB implements its monetary policy by influencing monetary

conditions. These are determined by the interest rate level on the
money market and by the exchange rate. The Swiss National Bank
sets the SNB policy rate. In so doing, it seeks to keep the secured
short-term Swiss franc money market rates close to the SNB policy
rate. The SNB focuses on SARON, the most important of the
short-term Swiss franc rates.

The SNB can influence money market rates by means of its open
market operations or adjust the interest rate on sight deposits
held by banks and other financial market participants at the SNB.
If necessary, the SNB may also use additional monetary policy
measures to influence the exchange rate or the interest rate level.

The framework within which the SNB may conduct transactions

on the financial market is specified in art. 9 NBA. Both the regular
and the other monetary policy instruments are described in
the ‘Guidelines of the Swiss National Bank on monetary policy
instruments’. These guidelines are supplemented by instruction
sheets for the SNB’s counterparties.

Sight deposits Sight deposits at the SNB are financial market participants’ most
at the SNB liquid assets. They are readily available for payments and are
considered legal tender. Domestic banks also hold sight deposits to
satisfy statutory minimum reserve requirements and as a liquidity
reserve. In addition to sight deposits held by domestic banks, total
sight deposits include sight liabilities towards the Confederation, sight
deposits of foreign banks and institutions, as well as other sight
liabilities. Any deployment of monetary policy instruments by the
SNB also has an influence on sight deposits. The SNB applies interest
to, or ‘remunerates’, sight deposits held by banks and other financial
market participants at the SNB. By setting the interest rate and
defining other conditions, the SNB influences the interest rate level
on the money market.

14 The Swiss National Bank in Brief

The Swiss National Bank in Brief 15
 Minimum reserves
The minimum reserve requirement on banks, laid down in the
National Bank Act (NBA), ensures that banks hold a minimum
amount of base money. Eligible assets in Swiss francs comprise
coins in circulation, banknotes and banks’ sight deposits held at the
SNB. At present, the minimum reserve requirement amounts to
2.5% of the relevant liabilities, which are calculated as the sum of
short-term liabilities in Swiss francs (up to 90 days) plus 20% of
liabilities towards customers in the form of savings and investments.

Access to monetary In principle, all banks domiciled in Switzerland and the Principality
policy operations of Liechtenstein are admissible as counterparties in SNB monetary
policy operations. Other domestic financial market participants such
as insurance companies, as well as foreign banks, may be admitted,
provided there is a monetary policy interest in doing so and they
contribute to liquidity on the secured Swiss franc money market.

Open market Within its set of monetary policy instruments, the SNB distinguishes
operations and between open market operations and standing facilities. In the case
standing facilities
of the former, the SNB takes the initiative in the transaction, whereas
the initiative comes from the relevant counterparty in the case of
standing facilities.

16 The Swiss National Bank in Brief

Open market operations include repo transactions, the issuance, Open market
purchase and sale of its own debt certificates (SNB Bills), as well operations
as foreign exchange transactions. The SNB can carry out its open
market operations in the form of auctions or bilateral transactions.
Transactions on the money market are mostly conducted via an
electronic trading platform.

Standing facilities include the liquidity-shortage financing facility, Standing facilities

the intraday facility and the SNB COVID-19 refinancing facility
(CRF). For these facilities, the SNB sets the conditions under which
counterparties can obtain liquidity. The liquidity-shortage financing
facility serves to bridge unexpected liquidity bottlenecks. The
intraday facility eases interbank payment transactions in the Swiss
Interbank Clearing (SIC) payment system and foreign exchange
transactions in the multilateral foreign exchange settlement system
(Continuous Linked Settlement) (cf. chapter 5). The CRF, introduced
by the SNB in March 2020, was aimed at supporting the supply of
credit to the economy, thereby cushioning the economic impact of
the coronavirus pandemic.

In the case of liquidity-providing repo transactions, the SNB purchases Repo transactions
securities from a bank (or other financial institution admitted to
the repo market) and credits the corresponding sum in Swiss francs
to the counterparty’s sight deposit account with the SNB. At the
same time, it is agreed that the SNB will sell securities of the same
type and quantity back to the bank at a later date. In the case of
a liquidity-absorbing repo, the transactions are conducted in the
opposite direction. For the term of the repo agreement, the cash
taker generally pays interest (the repo rate) to the cash provider.

The Swiss National Bank in Brief 17

 Collateral eligible for SNB repos
The SNB requires that the banks and other financial market
participants with which it conducts credit transactions provide
sufficient collateral. In so doing, the SNB protects itself against
losses and ensures equal treatment of its counterparties.
The ‘Guidelines of the Swiss National Bank on monetary policy
instruments’ outline the types of securities that are eligible as
collateral for SNB transactions. The ‘Instruction sheet on collateral
eligible for SNB repos’ details the criteria which securities must
meet in order to be eligible as collateral in repo transactions with
the SNB. Since the SNB also admits foreign banks to its monetary
policy operations and since the portfolio of Swiss franc securities
is limited, it also accepts securities in foreign currencies. The SNB
sets high minimum requirements with regard to the marketability
and credit rating of securities.

Indexed repo In 2022, the SNB introduced the possibility of having the repo rate
transactions on its repo transactions indexed to the SNB policy rate (indexed repo
transactions). This enhances the SNB’s flexibility in steering
liquidity, since expectations of an interest rate change are irrelevant
to the participation of market players in auctions for indexed repo
transactions. In contrast to a repo transaction with a fixed repo rate,
in the case of an indexed repo transaction the repo rate is calculated
as the simple average of the index values over the term minus any
discount. The discount remains constant over the term of the repo
transaction, but the average of the index values – and thus also the
repo rate – is not known until the transaction matures.

18 The Swiss National Bank in Brief

The Swiss National Bank in Brief 19
SNB Bills The issuance of its own debt certificates in Swiss francs (SNB Bills)
allows the SNB to absorb liquidity. Terms can be up to one year.
To increase liquidity, the SNB can repurchase SNB Bills via the
secondary market.

Monetary policy in an environment of high excess liquidity

After a phase of a negative SNB policy rate lasting several years
(cf. chapter 2, box ‘Negative interest phase from 2015 to 2022’),
the SNB raised its policy rate into positive territory. The SNB uses
two levers to reduce excess liquidity and keep the secured short-
term Swiss franc money market rates close to the SNB policy rate.
The first lever is a tiered remuneration of the sight deposits that
banks and other financial market participants hold at the SNB.
This involves the SNB remunerating sight deposits up to a certain
threshold at the SNB policy rate and sight deposits above this
threshold at the SNB policy rate minus a discount. The calculation
of the institution-specific thresholds is based on the minimum
reserve requirements. The SNB sets a fixed threshold for account
holders not subject to any minimum reserve requirements. Tiered
remuneration allows the SNB to influence the general interest rate
level in the Swiss franc money market; it also creates an incentive
for sight deposit trading, which promotes the robustness of the
reference rate, SARON.

The second lever is the absorption of reserves by way of open

market operations. Liquidity-absorbing repo transactions and the
issuance of short-term SNB debt certificates (SNB Bills) are used to
reduce sight deposits, and thus the liquidity supply in the money
market. A reduction in the liquidity supply is necessary to keep the
secured short-term Swiss franc money market rates close to the
SNB policy rate. Without this reduction in liquidity, money market
interest rates would be close to the rate for sight deposits above
the threshold, and not to the SNB policy rate.

20 The Swiss National Bank in Brief

In order to fulfil its monetary policy mandate, the SNB may purchase Foreign exchange
or sell foreign currency against Swiss francs on the financial markets. transactions
Foreign exchange transactions conducted by the SNB are usually
either spot or swap transactions. In a foreign exchange swap, the
purchase (sale) of foreign currency at the current spot rate and the sale
(purchase) of the foreign currency at a later date are simultaneously
agreed. Such swaps are used to manage liquidity in Swiss francs.
The SNB concludes foreign exchange transactions with a wide range
of domestic and foreign counterparties.

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End-of-day values in percent
Introduction SNB policy rate 1
1.75
1.50
1.25
1.00
0.75
0.50
0.25
0.00
– 0.25
– 0.50
– 0.75
– 1.00
2019 2020 2021 2022 2023

SNB policy rate SARON

1 Until the introduction of the SNB policy rate in June 2019, monetary policy was
implemented by setting a target range for the three-month Libor.
Source(s): SIX Swiss Exchange Ltd, SNB

The Swiss National Bank in Brief 21

 4
Ensuring the supply and
distribution of cash

The SNB is entrusted with the note-issuing privilege. It supplies the

economy with banknotes that meet high standards with respect to
quality and security. The SNB is also charged by the Confederation
with the task of coin distribution.

Issuance and return of Banknotes and coins are supplied to the economy via the two
banknotes and coins cashier’s offices at the Berne and Zurich head offices, as well as
13 agencies operated by cantonal banks on behalf of the SNB.
The SNB issues banknotes and coins commensurate with demand
for payment purposes, offsets seasonal fluctuations, and withdraws
banknotes and coins no longer fit for circulation.

The supply and distribution of cash is a service which involves

multiple players. The large-scale distribution of banknotes and coins
is undertaken by the SNB, while local distribution is handled by
commercial banks, Swiss Post and cash processing operators. Demand
for banknotes, in particular for large denominations used as a store
of value, tends to rise in phases of low interest rates or during crises.
In phases of rising interest rates, on the other hand, this demand
tends to decline. Following the SNB policy rate hike in June 2022,
cash flows back to the SNB increased from July onwards, which
reduced the currency in circulation. On average, 537.6 million
banknotes, worth CHF 87.2 billion, were in circulation in 2022.

Production of Swiss banknotes are printed by Orell Füssli Ltd. The Confederation
banknotes and coins is responsible for the minting of coins, which is carried out by
Swissmint, the federal mint, in Berne.

The SNB determines banknote denomination and design. Particular

attention is paid to security. Given the speed at which counterfeiting
technology advances, the effectiveness of the security features on
the banknotes must be continuously reviewed.

22 The Swiss National Bank in Brief

In cooperation with third parties, the SNB has developed new security
features that offer up-to-date and effective protection against
counterfeiting. The percentage of counterfeit banknotes seized and
withdrawn from circulation is small by international standards.

At the end of April 2021, the SNB recalled the banknotes from the
eighth series. Banknotes from the sixth series onwards can be
exchanged at the SNB for an unlimited period of time at their full
nominal value.

Payment methods surveys of private individuals and companies

Since 2017, the SNB has regularly conducted representative
surveys on the use of the different payment methods by households
in Switzerland. These have shown a shift from cash to cashless
payment methods and increased uptake of associated innovations
by the population.

In 2021, the SNB carried out its first representative survey on the
use of payment methods by Swiss companies as well. That survey
found that companies select their payment methods on the basis
of customer and supplier preferences as well as transaction speed.

The SNB intends to continue regularly conducting surveys of

private individuals and companies. The surveys give the SNB an
overview of changes taking place in the payment methods
landscape and a basis for efficient planning in the cash domain
in line with its mandate.

The Swiss National Bank in Brief 23

 5
The SNB’s role in the
cashless payment system

The SNB has the task of facilitating and securing the operation of
cashless payment systems. It fulfils this duty primarily by serving
as commissioning party and system manager of the Swiss Interbank
Clearing (SIC) payment system.

SIC system The SIC system is the central payment system in Switzerland for
payments in Swiss francs. Via the SIC system, banks and other
financial market participants settle both their interbank payments
(payments between financial institutions as well as third-party
system payments) and retail payments. The latter are mainly initiated
by payment instruments such as bank transfers, direct debits and
eBill invoices. Likewise, some obligations arising from card
transactions are bundled and settled among the participants via the
SIC system. The SNB also uses the SIC system to provide the
Swiss franc money market with liquidity (cf. chapter 3).

The SIC system is a real-time gross settlement system. This means

that payment orders are executed continuously, individually,
irrevocably and with finality. Payments in the SIC system are settled
in central bank money. The deposits held by SIC participants in their
sight deposit accounts at the SNB are used as the means of payment
in the SIC system. Technically, a participant holds a sight deposit
account with the SNB and a settlement account in the SIC system –
legally, the two accounts form one unit. In 2022, a daily average of
approximately 3.7 million transactions amounting to CHF 200 billion
were settled via the SIC system. Retail payments accounted for
98.1% of transactions and 11.3% of turnover. Interbank payments
were responsible for 1.9% of transactions and 88.7% of turnover.

As commissioning party and system manager of the SIC system,

the SNB determines the admission criteria, provides the system
with liquidity, and defines the functionalities and settlement rules.

24 The Swiss National Bank in Brief

The Swiss National Bank in Brief 25
 The SNB has entrusted the operation of the SIC system to
SIX Interbank Clearing Ltd, a subsidiary of SIX Group Ltd (SIX).
SIX in turn is owned by a large number of national and
international financial institutions.

As a systemically important financial market infrastructure,

the SIC system is overseen by the SNB (cf. chapter 7).

SIC5 and instant payments

In 2020, the SNB and SIX Interbank Clearing Ltd initiated the SIC5
project to further develop the SIC system. Among other things, the
new generation of the SIC system allows the settlement of instant
payments, i.e. cashless retail payments that are processed around
the clock with the amount being made available for use by the final
recipient within seconds. The new SIC5 platform is intended to
create the technical framework required for instant payments. As
of August 2024, the largest financial institutions must be able
to process instant payments. This obligation will extend to all SIC
participants active in retail payment transactions by the end of
2026. Other payment methods in the SIC system, e.g. interbank
payments, will subsequently be migrated to the new platform.
With the SIC5 project, the SIC system will be strategically and
technically enhanced over the long term, taking the changes in
payment transactions into account. In accordance with its task to
facilitate and secure the operation of cashless payment systems,
the SNB is thus creating the framework at infrastructure level for
future-proof and account-based cashless payment transactions
which are secure, efficient and fast. The SIC5 project is being
developed in close collaboration with the SIC participants.

26 The Swiss National Bank in Brief

6
Asset management

The assets of the Swiss National Bank fulfil important monetary

policy functions. They consist mainly of gold and foreign currency
investments and, to a lesser extent, financial assets in Swiss francs.
Their size and composition are determined by monetary policy
requirements and the established monetary order.

Foreign currency investments (foreign exchange reserves), gold Currency reserves

holdings, the reserve position in the International Monetary Fund
(IMF) and IMF Special Drawing Rights comprise Switzerland’s
reserve assets. The foreign exchange reserves are made up
predominantly of bonds (around 75%) and equities (around 25%),
which are mainly denominated in euros and US dollars. The large-
scale purchases of foreign currency that were needed to curb
upward pressure on the Swiss franc in the period from 2009 until
2021 led to a manifold increase in the foreign exchange reserves.
The SNB’s gold holdings are mainly in the form of gold ingots,
with the remainder in gold coins. Switzerland receives Special
Drawing Rights as a member of the IMF, and these are managed
by the SNB (for information on the IMF, cf. chapter 8).

Function of the currency reserves

The currency reserves provide the SNB with room for manoeuvre in
its monetary policy. They are of special significance to Switzerland,
a country with a small open economy and an internationally
important financial centre. Currency reserves have a confidence-
building and stabilising effect and serve to prevent and overcome
crises. In the current environment, the level of the currency
reserves is largely dictated by the implementation of monetary
policy.

The Swiss National Bank in Brief 27

Financial assets The SNB’s financial assets in Swiss francs are made up of Swiss
in Swiss francs franc bonds, claims from repo transactions (cf. chapter 3), secured
loans and loans under emergency law. If present, the loans comprise
claims arising from emergency liquidity assistance drawn against
collateral, and claims arising from the SNB COVID-19 refinancing
facility (CRF). Also included under this item are any claims from
additional liquidity assistance loans with preferential rights in
bankruptcy proceedings and claims from liquidity assistance loans
with preferential rights in bankruptcy proceedings as well as
a federal default guarantee (cf. chapter 7).

Investment policy The SNB’s investment policy is governed by the primacy of monetary
policy. The SNB must always be in a position to move a large
volume of investments without unduly influencing prices on the
market. In addition, the SNB aims for the long-term value
preservation of currency reserves. The ‘Investment Policy Guidelines
of the Swiss National Bank (SNB)’ define the scope of its investment
activity as well as its investment and risk control process.

Investments are made in line with generally accepted principles of

asset management. The SNB manages its investment risk by means
of a broad diversification of currencies, asset classes and issuers.
To support its monetary policy at all times, the SNB holds a large
share of liquid and secure government bonds in the major currencies.
The SNB cannot hedge against the risk of Swiss franc appreciation,
as this would constitute demand for Swiss francs, thereby restricting
monetary policy. For this reason, it also invests to a small degree
in higher-risk, higher-yield asset classes, with an eye to generating
returns and ensuring that its currency reserves preserve their value.
It thus maintains around 25% of its investments in globally well-
diversified equities and a small proportion in corporate bonds.

28 The Swiss National Bank in Brief

The broad diversification and passive management of the equity Risks
portfolio ensure that its exposure to different risks is similar to that
of the global universe of listed companies, and that structural
changes in the global economy are also reflected in the SNB’s
portfolio.

To take account of the financial risks, the SNB needs a sufficiently

strong capital position, which it ensures by making annual allocations
to its provisions (cf. chapter 10).

��������� ��
��� ������

Foreign currency
investments 91%
Gold holdings 6%
Financial assets in CHF
1%
Sundry 2%
Total: CHF 881 billion
At year-end 2022

The Swiss National Bank in Brief 29

Non-financial aspects When managing securities of private sector issuers, the SNB also
takes non-financial aspects into consideration. Owing to its special
role vis-à-vis the banking sector, the SNB refrains from investing
in shares of systemically important banks worldwide. It also takes
account of Switzerland’s fundamental standards and values in its
investment policy. Consequently, it does not invest in shares and
bonds of companies whose products or production processes grossly
violate values that are broadly accepted at a societal level. The
SNB therefore does not purchase securities issued by companies that
seriously violate fundamental human rights, are involved in the
production of internationally condemned weapons or systematically
cause severe environmental damage. The SNB also excludes
securities of companies primarily active in the mining of coal
for energy production.

It should, however, be noted that the SNB is not tasked with using its
asset management activities to selectively influence the development
of certain economic sectors. Its investment policy therefore cannot
be geared to pursuing structural or climate policies. This means that
there must be no positive or negative selection aimed at advantaging
or disadvantaging specific economic sectors or promoting or
inhibiting economic, political or social change.

30 The Swiss National Bank in Brief

7
The SNB’s contribution to financial stability

Financial stability means that financial system participants,

i.e. banks and financial market infrastructures (FMIs), can perform
their functions and are resilient to potential shocks and disruptions.
It is an important prerequisite for economic development and
effective monetary policy implementation.

The National Bank Act (NBA) confers on the SNB the task of Statutory mandate
contributing to the stability of the financial system. The SNB
performs this task by analysing sources of risk to the financial
system, overseeing systemically important FMIs, and helping
to shape the operational framework for the Swiss financial centre.
A particular focus of attention is the resilience of systemically
important banks. Every year, the SNB publishes a financial stability
report, in which it assesses Swiss banking sector stability and
discusses developments and risks in the economic environment as
a whole as well as in the banking sector. In a crisis, the SNB fulfils
its mandate by acting as lender of last resort.

To create an environment that promotes stability, the SNB works

at national level with the Swiss Financial Market Supervisory
Authority (FINMA) and the Federal Department of Finance (FDF).
The SNB addresses the issue from a systemic perspective, and
its focus is therefore on the macroprudential aspects of regulation.
The monitoring of individual institutions, i.e. microprudential
supervision, is among FINMA’s responsibilities. At international
level, the SNB is a member of various bodies working on issues
related to financial stability, financial market regulation and FMIs
(cf. chapter 8).

The Swiss National Bank in Brief 31

 Regulatory measures to strengthen financial stability
The Basel Committee on Banking Supervision is a central
standard-setting body for banking regulation (cf. chapter 8). In
2010, in response to the financial crisis, it issued Basel III,
a revised version of the Basel international capital framework. This
raised the capital requirements for banks worldwide, introduced
quantitative liquidity requirements, and, as a last step, reviewed
standardised approaches for measuring credit and operational risks.
Banks which have been designated by the SNB as systemically
important are subject to an even stricter set of capital requirements.
Following the acquisition of Credit Suisse Group AG by UBS
Group AG (UBS), the systemically important banks in Switzerland
are currently UBS, Zürcher Kantonalbank, the Raiffeisen Group
and PostFinance. These banks must comply with special regulations
on liquidity, risk diversification and emergency planning. This is
aimed at reducing the risk of having to rescue a bank which is too
big and too important to the economy for it to be allowed to go
bankrupt (the ‘too big to fail’ issue), and includes measures to ensure
that the economically important functions of these banks can be
maintained even in the event of bankruptcy.

Basel III also makes provision for macroprudential measures,

including the countercyclical capital buffer (CCyB). If it is activated,
banks are obliged to increase their capital over and above existing
capital requirements, depending on vulnerabilities in the credit
market. The CCyB is primarily designed to strengthen the resilience
of the banking sector and to help counter excessive credit growth.
The Federal Council activates, deactivates, raises or lowers the
CCyB following a proposal of the SNB in each case.

32 The Swiss National Bank in Brief

In overseeing FMIs, the SNB focuses on those payment systems, Oversight of FMIs
central counterparties, central securities depositories and trading
facilities for distributed ledger technology (DLT) securities that
could harbour risks for the financial sector. Risks can arise, for
example, when operational, technical or financial problems in an
FMI spill over to other FMIs or financial intermediaries. This
can result in serious disruption on the financial markets. Operators
of such infrastructures must fulfil special requirements, which are
defined in the implementing provisions (the National Bank
Ordinance) to the NBA. When overseeing infrastructure operators
governed by the Financial Market Infrastructure Act, the SNB
cooperates with FINMA. In the case of FMIs domiciled abroad,
it collaborates with the relevant foreign authorities.

Apart from taking preventive measures, the SNB also actively Emergency liquidity
contributes to the resolution of financial crises. As lender of last resort, assistance
the SNB can provide emergency liquidity assistance (ELA) to
individual banks if they are no longer able to refinance themselves
via the market. To be eligible, the banks concerned must be
important for the stability of the financial system, solvent, and able
to post sufficient collateral to cover the liquidity assistance provided.

In March 2022, in the interest of providing liquidity to systemically

important banks should a crisis arise, the Federal Council announced
its intention to introduce a public liquidity backstop (PLB). The SNB
would thus provide a systemically important bank with additional
liquidity assistance in the form of a state-guaranteed loan in the
event of a crisis. Based on an emergency ordinance by the Federal
Council, the PLB was activated in March 2023 (cf. box ‘SNB’s
contribution to managing crisis at Credit Suisse’). In May of the
same year, the Federal Council continued its work on anchoring
the PLB in the Banking Act.

The Swiss National Bank in Brief 33

34 The Swiss National Bank in Brief
SNB’s contribution to managing crisis at Credit Suisse
Credit Suisse had already been struggling for some time to cope
with a loss of confidence and had suffered considerable outflows
of client funds as early as the beginning of October 2022. The
collapse of a regional US bank in mid-March 2023 triggered a swift
deterioration of the situation. Credit Suisse’s counterparties cut
credit limits and clients withdrew their deposits at a rapid rate. The
SNB used liquidity assistance loans to create a time window within
which a solution could be worked out. As lender of last resort, it
provided Credit Suisse with classic emergency liquidity assistance
(ELA). In addition, based on an emergency ordinance by the
Federal Council, the SNB provided a liquidity assistance loan
secured by means of preferential rights in bankruptcy proceedings
(ELA+). At the same time, the federal government, FINMA and the
SNB worked together under high-pressure conditions to find
a solution that was viable and as market-based as possible in order
to safeguard financial stability and protect the Swiss economy.

On 19 March 2023, UBS announced its intention to acquire Credit

Suisse. The SNB, once again based on the Federal Council’s
Emergency Ordinance, supported the deal by enabling Credit Suisse,
under a PLB, to access a liquidity assistance loan secured by means
of preferential rights in bankruptcy proceedings and a federal
default guarantee.

The Swiss National Bank in Brief 35

Financial sector IT system outages and disruptions, particularly those resulting from
cybersecurity cyberincidents, can severely jeopardise the availability, integrity
and confidentiality of data as well as critical services and functions
within the financial system. Due to the highly interconnected nature
of the financial system and the various cross-institutional processes,
sector-wide measures against cyber risks are necessary alongside
the precautions taken by the individual financial institutions. This
calls for close cooperation between the private stakeholders
(banks, insurance companies, FMIs, industry associations) and
a contribution by the authorities, namely the FDF, FINMA and
the SNB.

The SNB is a member of the Swiss Financial Sector Cyber Security

Centre (Swiss FS-CSC) association, founded in April 2022. The
association promotes institutionalised cooperation between the private
sector and the authorities in strategic and operational matters relating
to the cybersecurity of the financial sector. In particular, it supports
information exchange, the identification and implementation of sector-
wide prevention and protection measures, and crisis management
in the event of systemic cyberincidents.

36 The Swiss National Bank in Brief

8
International monetary cooperation

The objective of international monetary cooperation is to promote

the functioning and stability of the international monetary and
financial system and help overcome economic crises. As a country
with its own currency and major financial centre, Switzerland is
highly integrated with the global economy and therefore derives
particular benefit from a stable international monetary and financial
system.

Within the framework of international monetary cooperation, the

SNB participates in the International Monetary Fund (IMF), the
Bank for International Settlements (BIS), the Financial Stability
Board (FSB), the Organisation for Economic Co-operation and
Development (OECD), the G20 Finance Track at the invitation of
the G20 presidency, and the Central Banks and Supervisors
Network for Greening the Financial System (NGFS).

The IMF works to promote the stability of the global monetary and IMF
financial system as well as the economic stability of its member
countries. It monitors and regularly reviews economic developments
in all of its member countries. The IMF grants loans to countries
faced with balance of payment difficulties, relying on the funds of
its members to do so.

Switzerland is jointly represented in the IMF by the federal government Switzerland in the IMF
and the SNB. The Chairperson of the SNB’s Governing Board is
a member of the IMF’s highest decision-making body, the Board of
Governors, which consists of a representative from each member
country. The Head of the Federal Department of Finance (FDF) is
one of the 24 members of the International Monetary and Financial
Committee (IMFC), the IMF’s most important advisory body.
Switzerland is part of a voting group (constituency) whose other
members are Azerbaijan, Kazakhstan, the Kyrgyz Republic,
Poland, Serbia, Tajikistan, Turkmenistan and Uzbekistan. The
constituency’s executive director is one of the 24 members of the
Executive Board, the IMF’s most important operational body.

The Swiss National Bank in Brief 37

38 The Swiss National Bank in Brief
Switzerland and Poland hold the position of executive director and
deputy executive director, alternating every two years. The post of
Swiss executive director is held alternately by a representative of the
FDF and the SNB. The FDF and the SNB determine Switzerland’s
policy in the IMF and support the constituency’s executive director
in his or her activities.

The BIS in Basel serves as the bank for central banks and provides BIS
a forum for international monetary and financial cooperation among
central banks. The SNB participates in the four standing committees
of the BIS: the Basel Committee on Banking Supervision, the
Committee on Payments and Market Infrastructures, the Committee
on the Global Financial System, and the Markets Committee. The
SNB has held one of the seats on the Board of Directors since the
BIS was founded in 1930.

The BIS Innovation Hub aims to foster collaboration on innovative BIS Innovation Hub
financial technology within the central banking community and to Swiss Centre
gain in-depth insights into the relevant technological developments
affecting central banking. It also aims to develop public goods in the
technology space geared towards further improving the functioning
of the global financial system. The BIS Innovation Hub maintains
various centres, one of them in collaboration with the SNB.

Experiments with a central bank digital currency for financial

institutions – a so-called wholesale central bank digital currency
(wCBDC) – are being carried out at the Swiss Centre. The experiments
are exploratory in nature and serve to better understand the implications
of new DLT-based technologies. They do not allow any conclusions
to be drawn about the SNB’s decision for or against the introduction
of Swiss franc wCBDC.

The Swiss National Bank in Brief 39

 In addition, the SNB’s analysis of topics surrounding retail CBDC,
which would be made accessible to the public, includes participation
in a working group with other central banks and the BIS. The SNB
currently sees no additional benefits from retail CBDC. However, in
view of ongoing digitalisation, the SNB considers it important
to participate in international work on retail and wholesale CBDC.

FSB The FSB brings together national authorities responsible for financial
stability, international organisations and standard-setting bodies.
Switzerland is represented in the Plenary by the SNB and the FDF.
The SNB is also a member of the Steering Committee and the
Standing Committee on Assessment of Vulnerabilities. Representation
in other committees and working groups is shared between FINMA,
the FDF and the SNB, which collaborate closely to formulate
Switzerland’s position.

OECD Various committees of the OECD work to promote the development

of relations among the organisation’s 38 member countries with
regard to economic, social and development policies. Together with
the federal government, the SNB represents Switzerland on the
Economic Policy Committee, the Committee on Financial Markets,
and the Committee on Statistics and Statistical Policy.

G20 The SNB, together with the federal government, is invited to take
part in the meetings of finance ministers and central bank governors
of the G20 group of leading advanced and emerging economies,
known as the Finance Track, and participates in a number of working
groups.

40 The Swiss National Bank in Brief

The NGFS serves as a forum in which central banks and supervisory NGFS
authorities can discuss the risks climate change poses to the economy
and the financial system. Within the framework of the NGFS,
institutions are examining how best to counter such risks and fund
the transition to more sustainable economic activity. Through
its membership of the NGFS, the SNB can engage in dialogue in
order to better gauge the potential impact of climate risks on
macroeconomic developments and financial stability.

At a bilateral level, the SNB cooperates with other central banks and Bilateral cooperation
authorities. This bilateral cooperation involves exchanges on topics
which are debated in international financial institutions, as well as
participation in bilateral financial dialogues with other countries, which
are led by the State Secretariat for International Finance (SIF).
Furthermore, the SNB provides technical assistance to other central
banks upon request. This generally takes the form of individual
consultations with SNB experts, either at the central bank concerned
or in Switzerland. In addition, the SNB is involved in cross-national
activities to promote the exchange of central bank-specific expertise
between central banks. Finally, under the terms of the Monetary
Assistance Act, the SNB can – in collaboration with the federal
government – grant loans and guarantees to individual countries
and international institutions.

Switzerland and the Principality of Liechtenstein concluded a Principality of

Currency Treaty in 1980. Prior to this, there had already been Liechtenstein
a de facto currency union between the two countries for 60 years.
The SNB acts as Liechtenstein’s central bank and the Swiss franc
is the country’s official currency.

The Swiss National Bank in Brief 41

 9
Independence, accountability
and relationship with the Confederation

The SNB fulfils its monetary policy mandate independently of the

Swiss government and parliament. This form of organisation reflects
the historical experience that independent central banks are better
able to maintain price stability than those subordinated to political
authorities. The SNB’s independence is counterbalanced by its duty
of accountability – to the Federal Council, the Federal Assembly
and the general public.

Legal basis The SNB’s independence is enshrined in the Federal Constitution.

of independence It entails various aspects, which are set out in detail in the National
Bank Act (NBA). Its functional independence prohibits the SNB and
its bodies from accepting instructions issued by the Federal Council,
the Federal Assembly or any other body in fulfilling its monetary
policy tasks (art. 6 NBA). Its financial independence is evident both
in the SNB’s budgetary autonomy resulting from its legal status
as a special-statute joint-stock company, and in the prohibition from
granting loans to the Confederation (art. 11 para. 2 NBA). Direct
state access to the banknote printing press is thus blocked. The SNB’s
institutional independence is indicated by the fact that it is an
independent legal entity with an organisation of its own. Finally, the
independence of the SNB in personnel issues is reflected by the
fact that members of the Governing Board and their deputies may be
removed from office during their fixed term only if they no longer
fulfil the requirements for exercising their office or have committed
a grave offence (art. 45 NBA).

Accountability As a counterbalance to its independence, the SNB is accountable

and provision to the Federal Council, the Federal Assembly and the general public
of information
and is obliged to provide them with information (art. 7 NBA). The
SNB reviews the economic situation and monetary policy with the
Federal Council and discusses issues relating to the government’s
economic policies. The members of the SNB’s Governing Board
hold regular meetings with the Federal Council Committee for
Financial Matters to this end. Furthermore, the SNB draws up an
annual written report – the accountability report – for the Federal
Assembly on how it has fulfilled its statutory tasks, and explains
its monetary policy to the relevant committees. The SNB keeps the

42 The Swiss National Bank in Brief

general public informed of its activities by means of press releases,
news conferences and speeches, as well as regular publications on its
monetary policy, such as the Quarterly Bulletin. The accountability
report prepared for the Federal Assembly is also published and made
available to the general public. By explaining its policy and
rendering account for its decisions and their consequences, the
SNB makes its activities transparent.

As the SNB performs a public function, it is administered with the Cooperation with
cooperation of the Confederation and is under its supervision. and supervision by
the Confederation
Thus, the Federal Council appoints the majority of the Bank Council
members, including the President and the Vice President, as well
as the members and deputy members of the Governing Board, on the
recommendation of the Bank Council. In addition, the Federal
Council approves the SNB’s Organisation Regulations issued by the
Bank Council. The SNB must also submit its financial report to
the Federal Council for approval before it can be approved by the
General Meeting of Shareholders. In this way, the Swiss government
ensures that the SNB is managed effectively and efficiently.

The SNB also acts as the Confederation’s bank (art. 5 para. 4 and Banker to the
art. 11 NBA). It keeps sight deposit accounts in Swiss francs and Confederation
foreign currencies for the Confederation, via which it settles the
latter’s domestic and foreign payment transactions. In addition, it
provides technical and advisory assistance in connection with the
issuance of Confederation bonds and money market debt register
claims. Furthermore, the SNB acts as the payment office for coupons
and repayments of Confederation bonds. Finally, it manages the
Confederation’s securities custody accounts and conducts money
market and foreign exchange transactions. Banking services to the
Confederation are governed by an agreement between the
Confederation and the SNB.

The Swiss National Bank in Brief 43

44 The Swiss National Bank in Brief
10
The SNB as a company

The SNB is a joint-stock company governed by special provisions

under federal law. It is administered with the cooperation and under
the supervision of the Confederation in accordance with the provisions
of the National Bank Act (NBA). Its shares are registered and traded
on the Swiss stock exchange (SIX Swiss Exchange) under the Swiss
Reporting Standard. The share capital amounts to CHF 25 million,
about half of which is held by public shareholders (cantons, cantonal
banks, etc.). The remaining shares are largely in the hands of private
individuals. The Confederation does not hold any shares.

Provisions and distribution of profits

Art. 30 NBA contains a special provision governing the determination
of profits, which stipulates that the SNB must set up provisions
permitting it to maintain the currency reserves at a level necessary
for monetary policy purposes. When doing so, it takes into account
the development of the Swiss economy, as well as the risks arising
from the balance sheet. The annual result following the allocation
to the provisions for currency reserves is the distributable annual
result, which can be either positive or negative.

Given the considerable fluctuations in the SNB’s earnings, the

NBA stipulates that profit distribution be maintained at a steady
level. The level of the annual profit distribution to the Confederation
and the cantons is laid down in an agreement between the Federal
Department of Finance (FDF) and the SNB, which aims to smooth
the flow of payments over several years. To this end, the SNB carries
a distribution reserve on its balance sheet, which can likewise be
either positive or negative. Together with the distributable annual
result, this constitutes the net profit/net loss.

The Swiss National Bank in Brief 45

 The agreement for the financial years 2020 – 2025 provides for an
annual distribution to the Confederation and the cantons, if there
is a net profit. In the event of a net loss, no distribution will be
made. The maximum distribution of CHF 6 billion will be made if
a net profit of at least CHF 40 billion is achieved, and it will be
reduced incrementally in proportion to a lower net profit. Art. 31
NBA specifies that the amount to be paid out accrues to the
Confederation and the cantons, with one-third going to the
Confederation and two-thirds to the cantons.

Organisational The NBA and the SNB’s Organisation Regulations govern the
structure structure and organisation of the Swiss National Bank. The SNB has
two head offices, one in Berne and one in Zurich, and a branch office
in Singapore. It also maintains representative offices with delegates
for regional economic relations in Basel, Geneva, Lausanne, Lucerne,
Lugano and St Gallen. These delegates, like those in Berne and
Zurich, are responsible for monitoring economic developments and
explaining the SNB’s policy in the regions. Furthermore, the SNB
maintains 13 agencies for the supply and distribution of banknotes
and coins. These agencies are operated by cantonal banks.

The SNB is divided into three departments. For the most part, the
organisational units of Departments I and III are located in Zurich,
while those of Department II are mainly in Berne. Each of the
three departments is headed by a member of the Governing Board.
Each of these members has up to two deputies, who are involved
in the management of their department.

46 The Swiss National Bank in Brief

The Swiss National Bank in Brief 47
General Meeting The General Meeting of Shareholders is held once a year, as a rule
of Shareholders in April. Owing to the SNB’s public mandate, the powers of the
shareholders’ meeting are far less extensive than those of joint-stock
companies under private law.

Bank Council The Bank Council oversees and controls the conduct of business by
the SNB. It consists of eleven members. Six members, including the
President and Vice President, are appointed by the Federal Council,
and five are elected by the General Meeting of Shareholders. The
Bank Council sets up four committees from its own ranks: the Audit
Committee, the Risk Committee, the Compensation Committee
and the Nomination Committee.

Executive The SNB’s management and executive body is the Governing Board.
management It consists of three members. The Governing Board is responsible, in
particular, for monetary policy, asset management strategy, contributing
to the stability of the financial system, and international monetary
cooperation. It represents the SNB in the public sphere.

The Enlarged Governing Board consists of the three members of the

Governing Board and their deputies, and is responsible for issuing
the strategic guidelines for the SNB’s business operations.

48 The Swiss National Bank in Brief

The Board of Deputies is responsible for business operations and
ensures coordination in all operational matters of interdepartmental
importance.

The members of the Governing Board and their deputies are appointed
for a six-year term by the Federal Council on the recommendation of
the Bank Council. Reappointment is possible.

The SNB employs predominantly specialists in the fields of economics, Number of staff
law, political science, banking, IT, logistics and technology as
well as commercial training graduates. There are also apprentices
working at the SNB. In 2022, the SNB had a total of 979 staff
(891 full-time equivalents).

The Swiss National Bank in Brief 49

 Organisational chart

as at 1 July 2023

GENERAL MEETING OF SHAREHOLDERS EXTERNAL AUDITOR

BANK COUNCIL INTERNAL AUDIT

GOVERNING BOARD

ENLARGED GOVERNING BOARD

BOARD OF DEPUTIES

DEPARTMENT I

Secretariat General Secretariat Supervisory and Management Bodies

Communications
Documentation
Research Coordination, Education and Sustainability

Economic Affairs Monetary Policy Analysis

Forecast and Analysis Switzerland
Forecast and Analysis International
Economic Data Science
Regional Economic Relations

International Monetary Cooperation Multilateral Cooperation

International Policy Analysis
Bilateral Cooperation

Statistics Balance of Payments and Swiss Financial Accounts

Banking Statistics
Publications and Data Banks

Legal Services

Compliance

Human Resources

Premises and Technical Services

50 The Swiss National Bank in Brief

DEPARTMENT II

Financial Stability Banking System

Systemically Important Banks
Oversight

Cash Specialist Support

Procurement and Logistics
Cash Processing
Cash Circulation

Accounting

Controlling

Risk Management

Operational Risk and Security

DEPARTMENT III

Money Market and Foreign Exchange

(MMFX) Trading MMFX
Market Analysis
Technology and Data Science MMFX

Asset Management Portfolio Management

Portfolio Trading

Banking Operations Banking Operations Analysis

Middle Office
Back Office

Information Technology Banking Applications

Economic Information Systems
Business Support Processes
Infrastructure
Central IT Services

Singapore

The Swiss National Bank in Brief 51

 11
Legal basis

The SNB’s mandate is derived from the Federal Constitution. The

Federal Act on the Swiss National Bank (National Bank Act, NBA)
of 3 October 2003 sets out this mandate in detail and, with its
various implementation decrees together with the Federal Act on
Currency and Payment Instruments (CPIA) of 22 December 1999,
constitutes the central statutory framework governing the activities
of the SNB.

Federal Constitution In accordance with art. 99 of the Federal Constitution, the SNB is
required to pursue a monetary policy that serves the overall interests
of the country.

In addition, art. 99 enshrines the SNB’s independence and requires

it to set aside sufficient currency reserves from its earnings, also
specifying that a part of these reserves be held in gold. The SNB’s
independence and its currency reserves are intended to help maintain
public confidence in the value of money. Finally, the Constitution
also stipulates that the SNB shall allocate at least two-thirds of its
net profits to the cantons (cf. chapter 10 for information on the
distribution of profits).

National Bank Act The activities of the SNB are primarily governed by the National
and implementation Bank Act. It specifies the various elements of the SNB’s constitutional
provisions
mandate (art. 5), the SNB’s independence (art. 6), and its duty
of accountability and information towards the Federal Council,
parliament and the general public (art. 7). The SNB’s scope of
business is outlined in arts. 9 – 13.

The National Bank Act also contains the legal principles relating
to the collection of statistical data (arts. 14 – 16), the definition of
minimum reserves for banks (arts. 17 – 18) and the oversight of
systemically important financial market infrastructures (arts. 19 – 21).

Details on these monetary policy powers can be found in the

National Bank Ordinance (NBO) issued by the SNB’s Governing
Board, and in the Financial Market Infrastructure Act (FinMIA).

52 The Swiss National Bank in Brief

In addition, the National Bank Act provides specific details on the
SNB’s constitutional mandate to set aside sufficient currency
reserves from its earnings. Arts. 30 and 31 contain explicit rules
on the determination and distribution of profits.

Finally, the National Bank Act also lays down the foundations of
the SNB’s organisational structure (arts. 3 and 33 – 48). Details
can be found in the SNB’s Organisation Regulations issued by the
Bank Council and approved by the Federal Council.

For the implementation of its monetary policy, the SNB relies

primarily on instruments based on contractual transactions. These
are governed by art. 9 NBA. Details can be found in the ‘Guidelines
of the Swiss National Bank on monetary policy instruments’
and the ‘Investment Policy Guidelines of the Swiss National Bank’.

The Federal Act on Currency and Payment Instruments (CPIA) Federal Act on
of 22 December 1999 lays down the Swiss franc as currency unit and Currency and
Payment Instruments
contains regulations on the characteristic features of currency
and money (legal tender). In addition to coins and banknotes, Swiss
franc sight deposits at the SNB are also deemed to be legal tender.
The SNB defines the criteria for determining whether institutions
that process payment transactions can be granted access to a sight
deposit account.

The Swiss National Bank in Brief 53

Legal basis of Details regarding Switzerland’s membership in the IMF and the
international monetary World Bank Group are laid down in the Federal Act on Switzerland’s
cooperation
Participation in the Bretton Woods Institutions of 4 October 1991.
This Act also specifies the terms of cooperation between the federal
government and the SNB with regard to the IMF. The Federal
Council, for example, designates Switzerland’s representatives at the
IMF in agreement with the SNB. The procedure to be followed
by Switzerland when delivering statements at the IMF is laid down
in an administrative agreement.

The division of responsibilities between the SNB and the federal

government regarding the granting of international monetary
assistance loans is specified in the Federal Act on International
Monetary Assistance of 19 March 2004. In the event of serious
disruptions in the international monetary system, the Federal Council
may instruct the SNB to grant loans or guarantees. It may also be
requested to grant loans or guarantees to the IMF’s special funds
or other IMF facilities, or to grant bilateral monetary assistance
loans or guarantees to individual countries. The federal government
guarantees the timely fulfilment of agreements concluded by
the SNB.

In the event that the IMF’s regular means are not sufficient to manage
a crisis, the New Arrangements to Borrow (NAB) form an additional
safety net. Switzerland’s participation in the IMF’s NAB is based
on special federal decrees. They stipulate that the SNB participate in
these Arrangements and that it can grant the associated loans to
the IMF. The SNB participates in the NAB up to a maximum of
CHF 13.7 billion.

54 The Swiss National Bank in Brief

The Swiss National Bank in Brief 55
 Appendix

1 SNB BALANCE SHEET (AGGREGATED)

������ �� ���-���
In CHF billions

1 100
1 000
900
800
700
600
500
400
300
200
100
0
2018 2019 2020 2021 2022

Gold holdings Foreign currency investments

Swiss franc securities Sundry 1
1 Reserve position in the IMF, international payment instruments, monetary
assistance loans, claims from US dollar repo transactions, claims from Swiss
franc repo transactions, secured loans, tangible assets, participations, other
assets.
Source(s): SNB

56 The Swiss National Bank in Brief

����������� �� ���-���
In CHF billions

1 100
1 000
900
800
700
600
500
400
300
200
100
0
2018 2019 2020 2021 2022

Banknotes in circulation
Sight deposits of domestic banks
Sight deposits of foreign banks and institutions
Other sight liabilities
Liabilities towards the Confederation
Liquidity-absorbing instruments 1
Sundry 2
Equity 3
1 SNB debt certificates, liabilities from Swiss franc repo transactions.
2 Other term liabilities, foreign currency liabilities, counterpart of Special Drawing
Rights allocated by the IMF, other liabilities.
3 Provisions for currency reserves, share capital, distribution reserve (before
appropriation of profit), annual result.
Source(s): SNB

The Swiss National Bank in Brief 57

 2 INFORMATION RESOURCES AND PUBLICATIONS

Websites WWW.SNB.CH
The website provides information on the SNB’s organisation and
responsibilities as well as its statistics and publications. Most
publications are available online, many also in printed form. It also
contains information for the media, the financial markets, shareholders
and the general public. The website content is available in German,
French, Italian and English.

On its website, the SNB publishes press releases and speeches by

members of the Governing Board. Also to be found on the website is
a glossary, which explains the most important terms from the world
of finance and monetary policy. ‘Questions and answers’ deals with
topics relevant to the SNB.

DATA.SNB.CH
On its data portal, the SNB provides an extensive range of data
relevant for monetary policy as well as for monitoring the economy.
Important monetary policy data – the SNB policy rate, SARON,
the special rate, the interest rate on sight deposits and the threshold
factor – are published on a weekly basis. The ‘Important monetary
policy data’ also include information on sight deposits at the SNB
and on minimum reserve requirements and banks’ compliance with
them. One of the major datasets is the statistical data compiled
by the SNB on banks and financial markets, the balance of payments,
direct investment, the international investment position and the
Swiss financial accounts. The SNB also publishes detailed data on
its money and foreign exchange market operations.

58 The Swiss National Bank in Brief

The data portal comprises a table selection with predefined tables
and charts, datasets with supplementary data series, and a resources
section. The latter contains information on the data portal and an
overview for each topic, briefly describing the range of data available
and the correlations. It also features focus articles closely related
to the published data.

YOUTUBE, TWITTER AND LINKEDIN Social media

The SNB’s YouTube channel offers an extensive range of videos.
There are numerous films showing the design and security features
of the ninth banknote series and how the notes are made. The film
‘The Swiss National Bank – What it does and how it works’, which
lasts about 15 minutes, takes a behind-the-scenes look at the SNB
and its monetary policy. The videos are available in German, French,
Italian and English. There are also recordings of the news conferences
and general meetings of shareholders (Web TV) as well as SNB
research events (Research TV). The YouTube channel and the
individual videos can be accessed via the SNB website.

On Twitter, the SNB posts relevant publications from its website

as well as information on other current topics and projects.

The SNB likewise uses LinkedIn as a means of communication

and posts contributions on current publications and topics. Open
positions are also advertised on LinkedIn.

The Swiss National Bank in Brief 59

Educational resources OUR NATIONAL BANK
Our National Bank, a resource for schools and the general public,
can be found at our.snb.ch. It provides easily accessible information
on topics such as the SNB and its monetary policy, the importance
of price stability and the history of the minimum exchange rate. The
resource is available in German, French, Italian and English, and
can also be obtained in brochure form in all four languages (print
and online).

ICONOMIX
Iconomix is the SNB’s web-based educational programme offering
a range of teaching material that can be either downloaded or
ordered. It is aimed at teachers of economics and social studies at
upper secondary schools, but is also open to the general public
free of charge. Iconomix is available in full in German, French and
Italian, and partially in English, at www.iconomix.ch.

Ordering information Swiss National Bank, Library

resources and Email: library@snb.ch
publications
Telephone: + 41 58 631 11 50
Postal address: P.O. Box, 8022 Zurich
Address: SNB Forum, Fraumünsterstrasse 8, 8001 Zurich

60 The Swiss National Bank in Brief

3 ADDRESSES

Head offices Berne Bundesplatz 1 Tel. +41 58 631 00 00

P.O. Box, 3003 Berne Email snb@snb.ch

Zurich Börsenstrasse 15 Tel. +41 58 631 00 00

P.O. Box, 8022 Zurich Email snb@snb.ch

Representative Basel Freie Strasse 27 Tel. +41 58 631 40 00

offices P.O. Box, 4001 Basel Email basel@snb.ch

Geneva Rue de la Croix-d’Or 19 Tel. +41 58 631 40 20

P.O. Box 3020, 1204 Geneva Email geneve@snb.ch

Lausanne Avenue de la Gare 18 Tel. +41 58 631 40 10

P.O. Box 175, 1001 Lausanne Email lausanne@snb.ch

Lucerne Münzgasse 6 Tel. +41 58 631 40 40

P.O. Box 71, 6000 Lucerne Email luzern@snb.ch

Lugano Via Giovan Battista Pioda 6 Tel. +41 58 631 40 60

6900 Lugano Email lugano@snb.ch

St Gallen Neugasse 43 Tel. +41 58 631 40 70

P.O. Box 645, 9004 St Gallen Email st.gallen@snb.ch

Agencies The Swiss National Bank maintains agencies operated by cantonal banks
in Appenzell, Chur, Fribourg, Geneva, Glarus, Liestal, Lucerne, Sarnen,
Schaffhausen, Schwyz, Sion, Stans and Zug.

Branch office Singapore 8 Marina View #35 – 02 Tel. +65 65 80 8888

abroad Asia Square Tower 1 Email singapore@snb.ch
Singapore 018960

Library SNB Forum Tel. +41 58 631 11 50

Fraumünsterstrasse 8 Email library@snb.ch
8001 Zurich

The Swiss National Bank in Brief 61

Published by
Swiss National Bank
Secretariat General
Börsenstrasse 15
CH-8001 Zurich

Languages
German, French, Italian and English

Design
Interbrand Ltd, Zurich

Typeset and printed by

Neidhart + Schön Group AG, Zurich

Copyright
Reproduction and publication of figures and text permitted for
non-commercial purposes with reference to source.

To the extent that the information and data clearly derive from
outside sources, the users of such information and data are
obliged to respect any existing copyrights and to obtain the right
of use from the relevant outside source themselves.

© Photographs pp. 4, 15, 25, 38, 44 and 47: SNB

© Photographs pp. 8, 19, 34 and 55: Leo Fabrizio

Edition
18th edition, July 2023