Central Banks - SNB Background RSS Feed

Responsibilities And Goals Of The Swiss National Bank

Forex Hound Team — Thu, 31 Jan 2008 07:42:00 EST

The Swiss National Bank conducts the country’s monetary policy as an independent central bank. It is obliged by Constitution and statute to act in accordance with the interests of the country as a whole. Its primary goal is to ensure price stability, while taking due account of economic developments. In so doing, it creates an appropriate environment for economic growth.

Structure And Organisation

Forex Hound Team — Wed, 30 Jan 2008 07:46:00 EST

The National Bank was founded by virtue of the Federal Act on the Swiss National Bank, which entered into force on 16 January 1906. Business was started on 20 June 1907.

Monetary Policy Strategy

Forex Hound Team — Tue, 29 Jan 2008 07:53:00 EST

The Federal Constitution entrusts the Swiss National Bank, as an independent central bank, with the conduct of monetary policy in the interests of the country as a whole (art. 99 FC). The mandate is explained in detail in the National Bank Act (art. 5 para. 1), which requires the SNB to ensure price stability and, in so doing, to take due
account of economic developments.

Investment And Risk Control Process

Forex Hound Team — Mon, 28 Jan 2008 08:21:00 EST

The National Bank Act (NBA), which entered into force in 2004, defines the SNB’s responsibilities and describes in detail its mandate with regard to asset management.

Asset Structure

Forex Hound Team — Sun, 27 Jan 2008 08:26:00 EST

The Swiss National Bank’s assets essentially consist of foreign currency, gold and financial assets in Swiss francs (securities and claims from repo transactions). They fulfil important monetary policy functions. Their composition is determined mainly by the established monetary order and the requirements of monetary policy. Part of the assets, including claims from repo transactions, serve immediate monetary policy purposes. The SNB uses repo transactions to supply commercial banks with liquidity in the form of base money by purchasing securities from them. By setting the terms for such transactions, the SNB is able to influence the level of interest rates in the money market. The National Bank holds currency reserves – in the form of foreign currency and gold – in order to have sufficient monetary policy leeway at all times. Currency reserves serve to prevent and overcome potential crises.

Foreign Exchange Reserves And Swiss Franc Securities (End Of The Q4 2007)

Forex Hound Team — Sat, 26 Jan 2008 08:39:00 EST

As at 31 December 2007, the key asset allocation data for the foreign exchange reserves and the monetary CHF portfolio were as follows (figures of previous quarter are indicated in brackets):

Investment Risk Profile

Forex Hound Team — Fri, 25 Jan 2008 08:46:00 EST

The main risks to investments are market risks, i.e. risks related to the gold price, exchange rates, share prices and interest rates. These risks are managed primarily through diversification. The SNB counters liquidity risk by holding a considerable part of its investments in the world’s most liquid currencies and markets. The SNB also enters into some credit risk. Compared with the market risk, this is insignificant, however.

Investment Performance

Forex Hound Team — Thu, 24 Jan 2008 08:50:00 EST

How The SNB Promotes Financial Stability

Forex Hound Team — Wed, 23 Jan 2008 05:01:00 EST

The SNB analyses the developments in the financial markets and in the area of financial market infrastructure. It pays special attention to the Swiss banking industry and the payment and securities settlement systems.

Swiss Banking Sector

Forex Hound Team — Tue, 22 Jan 2008 05:06:00 EST

The Swiss National Bank (SNB) divides the 338 banks in Switzerland into various categories: big banksbig banks, cantonal bankscantonal banks, regional banks and savings banksregional banks and savings banks, Raiffeisen banksRaiffeisen banks, other banks (including, in particular, commercial banks and stock exchange bankscommercial banks and stock exchange banks, as well as foreign-controlled banksforeign-controlled banks), branches of foreign banksbranches of foreign banks and private banksprivate banks. These bank categories differ with regard to their size, business focus, geographic scope of activities and legal form. Within the banking sector, the big banks maintain a dominant position in every respect.

Oversight Of Payment And Securities Settlement Systems

Forex Hound Team — Mon, 21 Jan 2008 05:24:00 EST

Under the National Bank ActNational Bank Act, the Swiss National Bank (SNB) has the mandate to oversee systems for the clearing and settlement of payments (payment systems) and transactions with financial instruments, notably securities (securities settlement systems). The SNB focuses particularly on the systemically important payment and securities settlement systems.

Business Continuity Planning (BCP) In The Swiss Financial Sector

Forex Hound Team — Sun, 20 Jan 2008 05:28:00 EST

On 6 February 2006, a working group headed by the Swiss National Bank published recommendations on contingency planning and crisis management for the Swiss financial centre. They are contained in the report "Business Continuity Planning in the Swiss Financial Centre". The working group also included representatives of the Swiss Federal Banking Commission, the operators of key financial market institutions such as SIS Swiss Financial Services Group, SWX Swiss Exchange and the Telekurs Group, and important participants in the financial centre such as Credit Suisse, PostFinance and UBS.

Financial Stability Report

Forex Hound Team — Sat, 19 Jan 2008 05:30:00 EST

In its Financial Stability Report, the Swiss National Bank presents its assessment of the stability of Switzerland's banking sector and financial market infrastructures. The SNB publishes this report as part of its contribution to the stability of the financial system – a task assigned to it under the new National Bank Act. In the Financial Stability Report, the SNB focuses on trends that are observable at the levels of the banking system, the financial market infrastructure, the financial markets and the macroeconomic environment.

Banknotes And Coins

Forex Hound Team — Fri, 18 Jan 2008 05:33:00 EST