Services for the Confederation
Based on art. 5 para. 4 and art 11 of the National Bank Act (NBA), the National Bank shall provide banking services to the Swiss Confederation.
Remuneration for banking services
The SNB provides these banking services to the Confederation in return for adequate remuneration. However, they are offered free of charge if they facilitate the implementation of monetary policy. Services subject to remuneration comprise payment transactions, liquidity management and the custody of securities. Details of the services to be provided and the remuneration are laid down in an agreement concluded between the Confederation and the SNB.
The SNB keeps sight deposit accounts in Swiss francs and foreign currencies for the Confederation. The Confederation’s sight deposit accounts at the SNB are exempted from negative interest and thus do not bear interest.
The SNB issues money market debt register claims (MMDRCs) and Confederation bonds on behalf of and for the account of the Confederation. These are issued by auction via the SIX Repo Ltd electronic trading platform.