National bank of Switzerland
   HOME

TheInfoList



OR:

The Swiss National Bank (SNB; german: Schweizerische Nationalbank; french: Banque nationale suisse; it, Banca nazionale svizzera; rm, Banca naziunala svizra) is the
central bank A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central ba ...
of
Switzerland ). Swiss law does not designate a ''capital'' as such, but the federal parliament and government are installed in Bern, while other federal institutions, such as the federal courts, are in other cities (Bellinzona, Lausanne, Luzern, Neuchâtel ...
, responsible for the nation's
monetary policy Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often a ...
and the sole issuer of
Swiss franc The Swiss franc is the currency and legal tender of Switzerland and Liechtenstein. It is also legal tender in the Italian exclave of Campione d'Italia which is surrounded by Swiss territory. The Swiss National Bank (SNB) issues banknotes and the f ...
banknote A banknote—also called a bill (North American English), paper money, or simply a note—is a type of negotiable instrument, negotiable promissory note, made by a bank or other licensed authority, payable to the bearer on demand. Banknotes w ...
s. The primary goal of its mandate is to ensure price stability, while taking economic developments into consideration. The SNB is an ''
Aktiengesellschaft (; abbreviated AG, ) is a German word for a corporation limited by Share (finance), share ownership (i.e. one which is owned by its shareholders) whose shares may be traded on a stock market. The term is used in Germany, Austria, Switzerland (wh ...
'' under special regulations and has two head offices, one in
Bern german: Berner(in)french: Bernois(e) it, bernese , neighboring_municipalities = Bremgarten bei Bern, Frauenkappelen, Ittigen, Kirchlindach, Köniz, Mühleberg, Muri bei Bern, Neuenegg, Ostermundigen, Wohlen bei Bern, Zollikofen , website ...
and the other in Zurich.


History

The bank formed as a result of the need for a reduction in the number of commercial banks issuing banknotes, which numbered 53 sometime after 1826. In the 1874 revision of the Federal Constitution it was given the task to oversee laws concerning the issuing of banknotes. In 1891, the Federal Constitution was revised again to entrust the Confederation with sole rights to issue banknotes. The Swiss National Bank was founded under the law of 6 October 1905 ('the National Bank Act'), which entered into force on 16 January 1906. Business was started on 20 June 1907. Sometime during
World War I World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...
(1914–1917) the bank was instructed to release notes of small denomination, for the first time, by the Federal Council of Switzerland. The Federal Council devalued the Swiss Franc during 1936, and as a result there was made available to the National Bank an amount of money, which the bank subsequently stored in a reserve for use in future situations of emergency. In 1981 the bank participated in research involving Orell Füssli and an optical research group named
Landis+Gyr Landis is a surname. Notable people with the surname include: * Arthur H. Landis, American science fiction and fantasy writer * Bill Landis, American baseball player *Carole Landis, American film actress *Charles B. Landis, U.S. Representative from ...
, on matters of banknote design. During 1994 the bank was described as a
joint-stock company A joint-stock company is a business entity in which shares of the company's capital stock, stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their share (finance), shares (certificates ...
acting under the administration and supervision of the Confederation. It had eight branches and twenty sub-branches within
cantons A canton is a type of administrative division of a country. In general, cantons are relatively small in terms of area and population when compared with other administrative divisions such as counties, departments, or provinces. Internationally, t ...
. The governing board had overall executive management of the National Bank, with supervision entrusted to its shareholders, the banks' council, the banks' committee, its local committees and auditing committee. The three members of the governing board together decided the monetary policy of the Swiss National Bank. Towards the end of 1993 it had 566 employees. With the inception of Article 99 of the Federal Constitution, in May 2004, the National Bank achieved formal independence.


Ownership

As of 31 December 2021 78,17% of voting shares are held by public shareholders (
cantons A canton is a type of administrative division of a country. In general, cantons are relatively small in terms of area and population when compared with other administrative divisions such as counties, departments, or provinces. Internationally, t ...
, cantonal banks, etc.). The remaining shares are largely in the hands of private persons. Shares of the SNB have been listed at the
SIX Swiss Exchange SIX Swiss Exchange (formerly SWX Swiss Exchange), based in Zurich, is Switzerland's principal stock exchange (the other being Berne eXchange). SIX Swiss Exchange also trades other security (finance), securities such as Swiss government bonds and d ...
since 1907. As of April 2022,
Theo Siegert Theo is a given name and a hypocorism. Greek origin Many names beginning with the root "Theo-" derive from the Ancient Greek word ''theos'' (''θεός''), which means god, for example: *Feminine names: Thea, Theodora, Theodosia, Theophania, ...
, a German entrepreneur, holds 5.05% of its stocks, and as such, he is the third-largest shareholder, between the Canton of Vaud (3.401%) and the
Canton of Zürich The canton of Zürich (german: Kanton Zürich ; rm, Chantun Turitg; french: Canton de Zurich; it, Canton Zurigo) is a Swiss canton in the northeastern part of the country. With a population of (as of ), it is the most populous canton in the ...
(5.2%). The national bank's statutes, though, limit the voting rights of private investors to 100 shares.


Capping of euro exchange rate

The SNB announced on 6 September 2011 to set a minimum exchange rate of CHF 1.20 per euro and that it would "enforce this minimum rate with the utmost determination and is prepared to buy foreign currency in unlimited quantities" in order to take measures to stem the development of a possible recession. The bank stated the 1.20 exchange rate was defendable as the bank could potentially proceed to mint enough banknotes to control the rate sufficiently. The SNB announced on 15 January 2015 the euro currency arrangement would end as the euro crisis had passed and the Europeans would be making financial policy changes.


Responsibilities

The basic governing principles of the Nationalbank are contained within Article 99 of the Federal Constitution, which deals with matters of monetary policy. There are three numbered factors concerning principles explicitly mentioning the Nationalbank, of four altogether shown within the Article. The SNB is therefore obliged by constitutional statute law to act in accordance with the
economic An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is ...
interests of Switzerland. Accordingly, the prime function of the Nationalbank is: The National Bank publishes within its own site a list of research done as work in progress by staff members, which begin at 2004 (2 papers), to 2005 (2), 2006 (11), 2007 (17), 2008 (19), 2009 (16), 2010 (19), 2011 (14), 2012 (16), 2013 (11), 2014 (13), and to 1 August 2015 there is shown nine papers, a list of eight economic studies which relate to the tasks of the bank, listed from 2005, in addition to a bi-annually published update of research, listed from 2012 to the present.


Cash supply and distribution

The National Bank is entrusted with the note-issuing privilege. It supplies the economy with banknotes. It is also charged by the Confederation with the task of coin distribution.


Cashless payment transactions

In the field of cashless payment transactions, the National Bank provides services for payments between banks. These are settled in the Swiss Interbank Clearing (SIC) system via sight deposit accounts held with the National Bank.


Investment of currency reserves

The National Bank manages currency reserves. These engender confidence in the Swiss franc, help to prevent and overcome crises and may be utilized for interventions in the
foreign exchange market The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspec ...
.


Financial system stability

The National Bank contributes to the stability of the financial system by acting as an arbiter over monetary policy. Within the context of this task, it analyses sources of risk to the financial system, oversees systemically important payment and securities settlement systems and helps to promote an operational environment for the financial sector.


International monetary cooperation

Together with the federal authorities, the National Bank participates in international monetary cooperation and provides technical assistance.


Banker to the Confederation

The Swiss National Bank acts as banker to the Swiss Confederation. It processes payments on behalf of the Confederation, issues money market debt register claims and bonds, handles the safekeeping of securities and carries out money market and foreign exchange transactions.


Statistics

The National Bank compiles statistical data on banks and financial markets, the balance of payments, the international investment position and the Swiss financial accounts.


Policies


Investments

The Swiss National Bank invests its assets, particularly in the
stock market A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include ''securities'' listed on a public stock exchange, as ...
. In 2018, its share portfolio stood at 153 billion Swiss francs. According to its guidelines, it "avoids shares in companies which produce internationally banned weapons, seriously violate fundamental human rights or systematically cause severe environmental damage". Since 2016, environmental associations and academics criticize the fact that these investments do not take into account the Paris Climate Agreement (article 2) and are responsible for at least 50 million tons of
carbon dioxide emissions Greenhouse gas emissions from human activities strengthen the greenhouse effect, contributing to climate change. Most is carbon dioxide from burning fossil fuels: coal, oil, and natural gas. The largest emitters include coal in China and lar ...
in 2017.


Monetary policy

The Swiss National Bank pursues a monetary policy serving the interests of the country as a whole. It must ensure price stability, while taking due account of economic developments. Monetary policy affects production and prices with a considerable time lag. Consequently, it is based on inflation forecasts rather than current inflation. The SNB's monetary policy strategy consists of three elements: a definition of price stability (the SNB equates price stability with a rise in the national consumer price index of less than 2% per year), a medium-term conditional
inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reductio ...
forecast, and, at operational level, a target range for a reference interest rate, which is the
Libor The London Inter-Bank Offered Rate is an interest-rate average calculated from estimates submitted by the leading banks in London. Each bank estimates what it would be charged were it to borrow from other banks. The resulting average rate is u ...
for three-month investments in Swiss francs.


Governance


General Meeting of Shareholders

The general meeting of shareholders is held once a year, usually in April. Owing to the SNB's public mandate, the powers of the shareholders' meeting are not as extensive as in joint-stock companies under private law.


Bank Council

The Bank Council oversees and controls the conduct of business by the Swiss National Bank and consists of 11 members. Six members, including the President and Vice President, are appointed by the Federal Council, and five by the Shareholders' Meeting. The Bank Council sets up four committees from its own ranks: an Audit Committee, a Risk Committee, a Remuneration Committee and an Appointment Committee. A list of the Bank Council members is published on the SNB website.


Governing board

The Swiss National Bank's management and executive body is the governing board. 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. The Governing Board consists of three members: * Chairman: Thomas Jordan * Vice Chairman: Fritz Zurbrügg * Member: Andréa M. Maechler


Chairmen of the governing board

* Heinrich Kundert, 20.06.1907-30.11.1915 * August Burckhardt, 01.12.1915-26.11.1924 *
Gottlieb Bachmann Gottlieb (formerly D. Gottlieb & Co.) was an American arcade game corporation based in Chicago, Illinois. History The main office and plant was located at 1140-50 N. Kostner Avenue until the early 1970s when a new modern plant and office was lo ...
, 01.07.1925-15.03.1939 * Ernst Weber, 01.04.1939-31.03.1947 * Paul Keller, 01.04.1947-31.05.1956 * Walter Schwegler, 01.06.1956-31.08.1966 * Edwin Stopper, 01.09.1966-30.04.1974 * Fritz Leutwiler, 01.05.1974-31.12.1984 * Pierre Languetin, 01.01.1985-30.04.1988 * Markus Lusser, 01.05.1988-30.04.1996 * Hans Meyer, 01.05.1996-31.12.2000 * Jean-Pierre Roth, 01.01.2001-31.12.2009 *
Philipp Hildebrand Philipp Michael Hildebrand (born 19 July 1963) is a Swiss banker who has been serving as a vice chairman of BlackRock since 2012.Jochelle Mendonca, Emma Thomasson and Sinead Cruise (June 13, 2012)Former Swiss central bank head to join BlackRock''R ...
, 01.01.2010-09.01.2012 *
Thomas J. Jordan Thomas J. Jordan (born 1963) is a Switzerland, Swiss economist and central banker. He is the chairman of the governing board of the Swiss National Bank, chairman of the Central Bank Counterfeit Deterrence Group, a member of the board of directo ...
, Since 18.04.2012


Gold reserves

The SNB manages the
official gold reserves A gold reserve is the gold held by a national central bank, intended mainly as a guarantee to redeem promises to pay depositors, note holders (e.g. paper money), or trading peers, during the eras of the gold standard, and also as a store of v ...
of Switzerland, which as of 2008 amount to 1,145
tonne The tonne ( or ; symbol: t) is a unit of mass equal to 1000  kilograms. It is a non-SI unit accepted for use with SI. It is also referred to as a metric ton to distinguish it from the non-metric units of the short ton ( United State ...
s and are valued at 30.5 billion CHF. The gold is believed to be stored in huge vaults beneath the Federal Square (''
Bundesplatz The Bundesplatz (literally: the "Federal Square") is the Government Plaza in Bern, ''de facto'' the capital city of Switzerland. It is situated in the Old City of Bern, the medieval city center of Bern. It is part of the Innere Neustadt which ...
'') to the north of the federal parliament building in
Bern german: Berner(in)french: Bernois(e) it, bernese , neighboring_municipalities = Bremgarten bei Bern, Frauenkappelen, Ittigen, Kirchlindach, Köniz, Mühleberg, Muri bei Bern, Neuenegg, Ostermundigen, Wohlen bei Bern, Zollikofen , website ...
, but the SNB treats the location of the gold reserves as a secret. Independent confirmation of the gold's location was obtained by the Bernese newspaper '' Der Bund'' in 2008. It published a photograph of the bullion that a keystone photographer was allowed to take at the SNB premises in Bern in 2001. ''Der Bund'' also quoted a retired official of the city's
surveying Surveying or land surveying is the technique, profession, art, and science of determining the terrestrial two-dimensional or three-dimensional positions of points and the distances and angles between them. A land surveying professional is ca ...
office as saying that the gold vaults take up an area of roughly half the Federal Square and have a depth of dozens of meters, down to the level of the
Aar AAR or Aar may refer to: Geography * Aar, a river in Switzerland, tributary of the Rhine *Aar (Lahn), a tributary of Lahn river in Germany, descending from the Taunus mountains * Aar (Dill), a tributary of Dill river in Germany, also in the bas ...
river. The SNB says that the gold reserves are stored in different safe places in Switzerland (70% -mostly under the
Bundesplatz The Bundesplatz (literally: the "Federal Square") is the Government Plaza in Bern, ''de facto'' the capital city of Switzerland. It is situated in the Old City of Bern, the medieval city center of Bern. It is part of the Innere Neustadt which ...
in Berne and at the
Bank for International Settlements The Bank for International Settlements (BIS) is an international financial institution owned by central banks that "fosters international monetary and financial cooperation and serves as a bank for central banks". The BIS carries out its work thr ...
in Basel) and abroad (i.e.
Bank of England The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the English Government's banker, and still one of the bankers for the Government of ...
and
Bank of Canada The Bank of Canada (BoC; french: Banque du Canada) is a Crown corporation and Canada's central bank. Chartered in 1934 under the ''Bank of Canada Act'', it is responsible for formulating Canada's monetary policy,OECD. OECD Economic Surveys: Ca ...
). From the latter years of the 1990s until sometime during 2005, the National Bank transferred from its possession (incompetently, when the
gold price Of all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a way of diversifying risk, especially through the use of futures contracts and Derivative (finance), derivatives. The gold market is subj ...
was at its historic low) half of its gold reserves, following the Nazi gold affair.


World War II

The Swiss National Bank provided 1.2 billion CHF to the Reichsbank, of this, a value of approximately 780 million CHF of the gold given to the National Bank was gold which had been looted by the forces of Germany. In addition the National Bank also exchanged between 1.2 and 1.6 billion CHF for gold from the Allied forces. During 20 April 1944, gold from the gold reserves of Italy arrived from
Como Como (, ; lmo, Còmm, label=Comasco dialect, Comasco , or ; lat, Novum Comum; rm, Com; french: Côme) is a city and ''comune'' in Lombardy, Italy. It is the administrative capital of the Province of Como. Its proximity to Lake Como and ...
at the railway station within Chiasso. There is controversy over the role of the Swiss National Bank in the transfer of
Nazi gold Nazi gold (german: Raubgold, "stolen gold") is gold possessed by Nazi Germany. Much of the focus of the discussion is about how much of this was transferred by Germany to overseas banks during World War II; the ruling Nazi party executed a policy o ...
during World War II. The SNB was the largest gold distribution centre in
continental Europe Continental Europe or mainland Europe is the contiguous continent of Europe, excluding its surrounding islands. It can also be referred to ambiguously as the European continent, – which can conversely mean the whole of Europe – and, by ...
before the war. A study by the
U.S. Department of State The United States Department of State (DOS), or State Department, is an United States federal executive departments, executive department of the Federal government of the United States, U.S. federal government responsible for the country's fore ...
in 1997 notes that the bank "must have known that some portion of the gold it was receiving from the Reichsbank was looted from occupied countries". This was confirmed by the Swiss
Bergier commission The Bergier commission in Bern was formed by the Swiss government on 12 December 1996. It is also known as the ICE (Independent Commission of Experts). Founded in a decade when Switzerland had come under recurring criticism for its behaviour dur ...
in 1998 which concluded that the SNB received US$440 million in gold from Nazi sources, of which US$316 million is estimated to have been looted. The gold from Nazi governorship sources was in the form of lingots containing gold looted from central banks of Europe and gold from
Jews Jews ( he, יְהוּדִים, , ) or Jewish people are an ethnoreligious group and nation originating from the Israelites Israelite origins and kingdom: "The first act in the long drama of Jewish history is the age of the Israelites""The ...
executed within the concentration camps established by the machination of the Nazi regime, which the SNB took without knowing these facts at the time, nor inquiring to any great degree in the process of its transfer into the possession of the SNB, according to Robert Vogler, a former archivist of the SNB.


See also

* Banking in Switzerland * Economy of Switzerland *
SARON SARON stands for Swiss Average Rate Overnight and represents the overnight interest rate of the secured funding market for the Swiss Franc (CHF). (Swiss Average Rate Overnight) is an overnight interest rates average referencing the Swiss Fra ...
(Swiss Average Rate Overnight) *
Swiss Financial Market Supervisory Authority The Swiss Financial Market Supervisory Authority (FINMA) is the Swiss government body responsible for financial regulation. This includes the supervision of banks, insurance companies, stock exchanges and securities dealers, as well as other ...
(FINMA) * Swiss gold reserves referendum, 2014 *
Swiss sovereign money referendum, 2018 The Swiss sovereign money initiative of June 2018, also known as Vollgeld,In german: link=no, Vollgeld-Initiative; in french: link=no, Initiative Monnaie Pleine; in it, Iniziativa Moneta Intera The official title of the referendum is the ''Swis ...


Notes and references


External links


Official website
{{Authority control
Switzerland ). Swiss law does not designate a ''capital'' as such, but the federal parliament and government are installed in Bern, while other federal institutions, such as the federal courts, are in other cities (Bellinzona, Lausanne, Luzern, Neuchâtel ...
Swiss companies established in 1907 Banks established in 1907 National Bank Companies based in Bern National Bank National Bank Companies listed on the SIX Swiss Exchange Financial regulatory authorities of Switzerland