Equity levels at the Swiss National Bank (SNB) are much too low for the risks its large balance sheet poses, according to Martin Schlegel. Extending the central bank’s capital base must be prioritised over distributing profits to Switzerland’s government and cantons, he told an audience of economists in Zurich on Friday. His remarks may indicate the SNB won’t make a payout to the state for this year, even though it achieved a solid profit in the first nine months. The institution already skipped disbursements for two years in a row after posting a record loss in 2022. + Should the SNB pay out more to the government? While distributions are governed by an agreement with the finance ministry, the central bank has some leeway as to how much of its earnings it holds back as reserves. Due to the size of its assets, which are currently worth some CHF840 billion ($940 billion), the institution’s performance depends strongly on market developments and can change rapidly. Schlegel said the ...
