Swiss National Bank

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The 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 National Bank 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 National Bank 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 National Bank 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

Within the framework of its task to ensure the stability of the financial system, the National Bank analyses account sources of risk emanating from the financial system. It oversees the systemically important payment and securities settlement systems and helps to shape the operating framework for the financial sector. Supervision of Switzerland's banking sector is the responsibility of the Swiss Federal Banking Commission (http://www.ebk.admin.ch).

Statistics The National Bank compiles various statistical data, notably banking statistics and the balance of payments. Tasks on behalf of the Confederation The National Bank acts as banker to the Confederation and, together with the federal authorities, participates in international monetary cooperation.