The Swiss National Bank conducts the country’s monetary policy as an independent central bank. It is obliged by Constitution and statute to act in accordance with the interests of the country as a whole. Its primary goal is to ensure price stability, while taking due account of economic developments. In so doing, it creates an appropriate environment for economic growth.
Mandate
The Swiss National Bank conducts the country’s monetary policy as an independent central bank. It is obliged by Constitution and statute to act in accordance with the interests of the country as a whole. Its primary goal is to ensure price stability, while taking due account of economic developments. In so doing, it creates an appropriate environment for economic growth.
Price stability
Price stability is an important condition for growth and prosperity. Inflation and deflation are inhibiting factors for the decisions of consumers and producers; they disrupt economic activity and put the economically weak at a disadvantage. The SNB equates price stability with a rise in the national consumer price index of less than 2% per annum. Monetary policy decisions are made on the basis of an inflation forecast and implemented by steering the three-month Libor.
Ensuring the supply of cash
The SNB is entrusted with the note-issuing privilege. It supplies the economy with banknotes that meet high standards with respect to quality and security. It is also charged by the Confederation with the task of coin distribution.
Cashless payment transactions
In the field of cashless payment transactions, the National Bank provides services for high-value payments between banks. These are settled in the Swiss Interbank Clearing (SIC) system via sight deposit accounts held with the SNB.
Investment of international reserves
The SNB manages international reserves (gold, foreign exchange, international payment instruments). They ensure confidence in the Swiss franc, help to prevent and overcome crises and may be utilised for interventions in the foreign exchange market.
Stability of the financial system
The National Bank contributes to financial stability by regularly analysing and monitoring conditions and developments in the financial system. It oversees the systemically important payment and securities settlement systems and contributes to the regulatory framework of the financial sector.
In the field of financial stability the National Bank cooperates with the supervisory authority, the Swiss Federal Banking Commission (www.ebk.admin.ch/e). A Memorandum of Understanding (MoU) Memorandum of Understanding (MoU) contains a clear division of the individual responsibilities of the two institutions and regulations on their cooperation.
Statistics
The SNB compiles various statistical data, notably banking statistics and the balance of payments.
Tasks on behalf of the Confederation
The SNB acts as banker to the Confederation and, together with the federal authorities, participates in international monetary cooperation
. "Swiss National Bank." . . Swiss National Bank. 1.31.08 <http://www.snb.ch/en>.
