Financial stability
A stable financial system is in the interests of Switzerland and its partners. It is central to a well-functioning economy and the effective implementation of monetary policy. The SNB makes an important contribution to the stability of the financial system.
A stable financial system
Financial stability is a key prerequisite for the functioning of a national economy and for the effective implementation of monetary policy. A stable financial system can be defined as a system whose individual components - financial intermediaries and the financial market infrastructure - fulfil their respective functions and prove resistant to potential shocks
The SNB mandate
Under the National Bank Act, the SNB has the task to contribute to the stability of the financial system. Moreover, the Act assigns the oversight of systemically important financial market infrastructures to the SNB.
In the field of financial stability the SNB cooperates with the Swiss Financial Market Supervisory Authority FINMA. A Memorandum of Understanding (MoU) contains a clear division of the individual responsibilities of the two institutions and regulations on their cooperation.
How the SNB promotes financial stability
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 financial market infrastructures.
At national level, the SNB participates in reform projects in conjunction with the federal government and the Swiss Financial Market Supervisory Authority (FINMA). At international level, the SNB is permanently represented on the Basel Committee on Banking Supervision (BCBS) and on the Committee on Payments and Market Infrastructures (CPMI) of the Bank for International Settlements (BIS), as well as on the Financial Stability Board (FSB).
Under the Extended Liquidity Facility (ELF), the SNB may grant liquidity support against sufficient collateral to banks that meet the eligibility criteria. The ELF can be used by banks to obtain liquidity if they deem their own liquidity buffers no longer sufficient.
The SNB is responsible for overseeing financial market infrastructures, focusing primarily on systems that are of importance to the stability of the Swiss financial system. The supervision of Switzerland's banking sector is the responsibility of the Swiss Financial Market Supervisory Authority (FINMA).