Swiss National Bank
2 min read
The Swiss National Bank is the central bank of Switzerland, known for its neutrality and national sovereignty. The bank implements the country’s monetary policy and controls the production and supply of Swiss franc banknotes.
The Reputation of Swiss Banking
The Swiss National Bank is known for offering premium financial services to other banks across the world. Swiss bank security is so highly regarded that many other central and national banks store their assets and cash using the Bank for International Settlements in Switzerland, which is the highest ranking international financial institution for banks.
The Swiss National Bank’s Function
The Swiss National Bank’s mission is to plan and enforce monetary policy that will continue to position Switzerland as a reliable destination for offshore banking.
The Swiss National Bank is responsible for controlling the money supply, operating bank wires, facilitating settlements, investing assets in the stock market to return yield, and monitoring the Swiss Consumer Price Index to gauge inflation.
The Swiss National Bank’s Organizational Structure
The National Bank of Switzerland is overseen by an 11 member Bank Council, which establishes the Audit Committee, Risk Committee, Remuneration Committee, and the Appointment Committee. Six members of the Bank Council are appointed by the Swiss federal government, while five are elected at the Bank’s shareholders meeting. Moreover, the Bank features a governing board with a Chairman, Vice Chairman, and Member.
Brief History of The Swiss National Bank
The Swiss National Bank was created by the National Bank Act in 1905. Switzerland intentionally maintained neutrality and focused on cultivating premier banking services to protect itself from European powers during the 1800’s.
The Bank’s legitimacy and security on an international scale is a result of influence by ultra wealthy Catholic kings and lords, who sought alternatives to Protestant financial institutions. For that reason, banks in Switzerland began to create and insure deposit accounts that helped to solidify its reputation for having some of the safest banks in the world.
Swiss National Bank Institutional Policy
Today, Swiss banks are known for their focus on privacy and security and their general unwillingness to cooperate with foreign agencies conducting investigations, thus fostering a favorable banking environment for investors seeking an international tax haven.
