Q&A about the Swiss National Bank (SNB)

The Swiss National Bank (SNB) is the central bank of Switzerland and is responsible for conducting monetary policy, maintaining price stability, and promoting the general economic welfare of the country. Established in 1907, the SNB is an independent institution that operates under a mandate from the Swiss government. Its main functions include issuing Swiss franc banknotes, managing the country’s foreign exchange reserves, and setting interest rates to influence the supply of money and credit in the economy. The SNB is also responsible for regulating the banking industry and ensuring the stability of the financial system. With a reputation for professionalism and expertise, the Swiss National Bank plays a key role in the Swiss economy and is widely regarded as one of the most respected central banks in the world.

Here are some Questions and Answers to help you learn more about the SNB.

1. What is the most curious fact about the Swiss National Bank (SNB)?

The SNB is a listed stock on the Swiss Stock Exchange (SIX). The SNB’s registered shares have been listed since the central bank’s foundation in 1907. Ticker: SNBN Look at the stock performance since 1995

2. Why is the SNB listed?

The SNB’s has been listed since it was founded in 1907, which made sense given the wide distribution of the shares. A stock exchange listing of the central banks is usually a historically grown construct and probably has more of a symbolic character.

3. What is the objective of the SNB?

The purpose of the SNB is not to generate profits that are distributed to its shareholders, but to fulfill its constitutional mandate The SNB must ensure price stability as the primary goal and take account of economic developments.

4. Is the SNB the only listed national bank in the world?

No, there are a few other national banks listed in stock exchanges such as the Bank of Japan (BoJ), the Belgium National Bank (BNB) and the Greek National Bank. In contrary, the Fed is not listed on the stock exchange.

5. How many assets does the SNB manage?

The SNB manages approx. $850 Billion in Assets. Additionally, the SNB owns 1,040 tons of Gold (worth $55 Billion). The actual market cap is CHF 441 Mio. Source http://srf.ch

5. How is the SNB currently invested?

Currencies: 40% EUR, 36% USD, 8% Yen, 6% GBP, 3% CAD and 7% other currencies Asset Classes: 70% sovereign Bonds, 20% Equity and 10% Alternatives. Gold is mainly held in bars. Source: http://srf.ch

6. Is the SNB the largest central bank in the world?

No, but it’s among the top 10 central banks worldwide. The largest central banks in the world are The Fed ($ 8.8 Trillion), Bank of Japan ($5.8 Trillion) and People’s Bank of China ($5.1 Trillion) Source: http://swfinstitute.org

7. Who owns the SNB?

Half of the shares are owned by the government (cantons and cantonal Banks) and the other half is owned by the public (private investors and institutions). source: http://snb.ch

8. What happens with the profits?

A dividend of a maximum of 6% of the share capital is paid from the balance sheet profit. One third of the remaining profit goes to the Federal Government and two thirds to the cantons.

9. Why did SNB had a loss in 2022?

So far this year the SNB made a loss of CHF 142.4 billion. This is the biggest loss in the SNB’s 115-year history. This is mainly due to the large EUR holdings. The appreciation of the Swiss franc has resulted in huge losses for the SNB.

10. How bad is this loss for the cantons?

The more profit the SNB makes, the more money it can distribute to the cantons and the federal government. Last year, the maximum amount of six billion Swiss francs flowed, two-thirds of which went to the cantons. The missing profits of this year will be painful for the cantons, but no surprise given the developments this year. There had already been no SNB distributions in 2013. It is clear that certain cantons will have a hard time, while others would do well without the extra chunk.

11. Can the SNB go bankrupt?

NO. If the SNB’s equity slips into the red, this would have no immediate impact on the bank. In this case, the distribution reserve would simply fall into negative territory.

12. Is the SNB the only bank partly owned by the private investors?

No, here is a list of other banks partly or fully owned by the public and private investors/institutions. Source: http://stock3.com

13. Which has been the best/worst performing central bank stock?

2022 YTD

Best: Bank of Japan -3.44%

Worst: Belgium National Bank: -46.91%

Last 3 years performance

Best: Bank of Greece +15.71%

Worst: Belgium National Bank (BNB) -61.07%

Performance since 1996

Best: SNB +866.12% (!!)

Worst: Bank of Japan -85.71%

14. Could a foreigner investor influence SNB’s policy?

NO. The participation and property rights of the SNB’s shareholders are severely restricted by law. In addition, for shareholders who do not belong to the Swiss public sector, voting rights are limited to 100 shares.