SNB chief commends Swiss banks for handling of Covid crisis
Swiss banks have so far weathered the impact of the Covid-19 pandemic well, according to Swiss National Bank (SNB) chairman Thomas Jordan.
This content was published on
2 minutes
swissinfo.ch with Reuters/ug
However, he cautioned that a strong franc could pose a problem for the Swiss financial industry.
“The global spread of coronavirus has led to a sharp deterioration in the economic environment and financial market conditions. Nonetheless, banks in Switzerland have so far withstood the effects of the pandemic well,” Jordan said in a keynote speech at the Lugano Banking Day on Monday.
Jordan said the Swiss franc was one of the most solid currencies in the world and as such tended to appreciate strongly in times of high uncertainty.
“We have witnessed this again recently,” he said, adding the central bank’s negative interest rate and willingness to intervene in the foreign exchange market served to counteract the attractiveness of Swiss franc investments.
The SNB said last month it was ready to buy more foreign currency to ease appreciation of the safe-haven franc. It kept its policy interest rate and the rate it charges on sight deposits at minus 0.75%.
“In general, an overvalued Swiss franc can pose a problem for the financial industry too,” Jordan said, citing banks’ wealth management businesses, where returns mainly accrued in foreign currencies while costs were incurred in francs.
Jordan said the SNB depended on an efficient and effective financial sector that transmitted the central bank’s monetary policy to the Swiss economy by granting loans.
He said the supply of credit and liquidity to small and medium-sized enterprises in Switzerland was currently working well.
He warned against setting administrative hurdles that limit the activities of the financial service sector unnecessarily and without bolstering stability.
More
More
Swiss lead way with crisis loans to small businesses
This content was published on
Switzerland’s success in providing rapid support to small businesses is drawing attention elsewhere in Europe.
Swiss authorities announce cost-cutting in asylum sector
This content was published on
The government notably wants to improve integration into the labour force, particularly for people with protection status S.
Various leaders confirm participation at Ukraine peace conference
This content was published on
The presidents of Poland, Finland, and Latvia and the prime ministers of Spain and Belgium will be at the Swiss-hosted talks in mid-June.
This content was published on
In the winter season up to April 2024, railway and cable car operators ferried 3% more visitors compared to the previous winter, and 5% more than the five-year average.
Rhine flooding: Swiss to invest CHF1 billion with Austria
This content was published on
As part of an international agreement with Austria, the Swiss government wants to pump CHF1 billion ($1.1 billion) into flood protection measures along the Rhine over the next three decades.
Swiss government proposes CHF10 million UNRWA donation
This content was published on
After months of debate, Switzerland plans to give CHF10 million ($11 million) to the UN agency this year, rather than the CHF20 million initially foreseen.
Swiss study: insects mainly migrate at midday and dusk
This content was published on
A study led by the Swiss Ornithological Institute in canton Lucerne is helping to better understand the movement patterns of migratory insects.
Red Cross: 22 staff killed in Middle East since October
This content was published on
The Red Cross and Red Crescent network in Gaza and Israel has lost 22 staff members since last October, the Swiss Red Cross (SRC) said on Wednesday.
Dortmund’s Kobel is first Swiss goalie in Champions League final
This content was published on
Borussia Dortmund’s Gregor Kobel has achieved history by becoming the first Swiss goalkeeper to reach a Champion’s League final.
University students in Switzerland join Gaza protest wave
This content was published on
Pro-Palestinian activists occupied university buildings in Lausanne, Geneva and Zurich on Tuesday, widening the protest movement in the Alpine nation.
Economic cost of pandemic will be enormous: SNB chief
This content was published on
In two newspaper interviews on Sunday, Jordan warned of significant job losses and an erosion of prosperity in the wake of the pandemic. The economy is currently operating at between 70% to 80% of normal levels, he told the SonntagsZeitungExternal link. “Many people may not yet be able to imagine what these numbers mean for prosperity…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.