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The General Meeting of Shareholders is held once a year, as a rule 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. The SNB has the task of facilitating and securing the operation of cashless payment systems. It fulfils this duty primarily as commissioning party and system manager of the Swiss Interbank Clearing (SIC) payment system.
Markets
Measurement problems arise, for example, when the quality of goods and services improves. Such changes are not fully taken into account in the CPI calculation; as a result, measured inflation tends to be slightly overstated. This the central bank’s net assets, which equates to the value of all investments minus its debts. This consists of CHF25 million share capital, the Provisions for Foreign Investments of CHF105 billion and Distribution Reserves, which stand at -CHF39 billion. The primary reason was that the price of company shares and bonds collapsed in 2022. Secondly, the SNB’s huge stockpile of foreign currency investments lost value as the euro depreciated against the Swiss franc.
For instance, if inflation temporarily exceeds the 2% ceiling as a result alpari forex broker review of one-off factors, such as a sudden surge in oil prices or strong exchange rate fluctuations, monetary policy does not necessarily need to be adjusted. Just over half of its shares are held by public institutions, with the rest traded on the Swiss stock market. It has the exclusive right to issue banknotes (note-issuing privilege) and has been mandated to conduct the country’s monetary policy.
I consent to the use of my data for the SWI swissinfo.ch newsletter. The SBC Privacy Policy provides additional information on how your data is processed. The SNB stipulates that the first CHF11 billion of profits must be channeled into the Provisions for Foreign Investments before anything can be paid into the Distribution Reserve.
The Swiss National Bank – What it does and how it works
In 2014, the SNB’s journey witnessed a significant milestone when 25 percent of its shares were offered to public subscription. In the section ‘The SNB explained’, you will find easy-to-understand information about the SNB and its monetary policy, the value of price stability and much more besides. It supplies the economy with banknotes that meet high standards with respect to quality and security. The SNB issues banknotes and coins commensurate with demand for payment purposes, offsets seasonal fluctuations, and withdraws damaged banknotes and coins.
Investments
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 review: wealth management unwrapped, revised and expanded authorities. As a counterbalance to its independence, the SNB is accountable to the Federal Council, the Federal Assembly and the general public.
The bank council is responsible for overseeing and controlling the SNB’s business activities. There are 11 members of the council who each serve four-year terms. The executive and management body of the bank is called the governing board. This board oversees asset management, monetary policy, along with international cooperation and financial stability in the nation. The board’s chairman is Martin Schlegel, who was appointed in 2024. As noted above, the Swiss National Bank is the central bank of Switzerland.
Since the SNB performs a public function, it is administered with the cooperation of the Confederation and is under its supervision. In addition, the Federal Council approves the SNB’s Organisation Regulations issued by the Bank Council.
- In 1891, the Federal Constitution was revised again to entrust the Confederation with sole rights to issue banknotes.
- If necessary, the SNB may also use additional monetary policy measures to influence the exchange rate or the interest rate level.
- 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.
- The SNB’s work is omnipresent in our everyday lives – when we make a cash withdrawal, do the weekly shopping or buy a home.
- Samba Finance Group shares were delisted and all its assets, debts, and operations were transferred to SNB.
SNB is an extension of two large banks (the National Commercial Bank and Samba). It commenced operations following a Royal Order rendered on December 26, 1953, as a general partnership resulting from the merger of several currency banks in the Kingdom of Saudi Arabia. The SNB’s gann fan trading strategy work is omnipresent in our everyday lives – when we make a cash withdrawal, do the weekly shopping or buy a home.
The objective of the SNB’s monetary policy is to ensure price stability in the medium and long term. Short-term price fluctuations, however, cannot be counteracted by monetary policy. The SNB has the mandate to conduct monetary policy in such a way that money preserves its value and the Swiss economy develops in an appropriate manner. Find out about the SNB’s monetary policy strategy, instruments and decisions here. The National Bank Act confers on the SNB the task of 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.