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Thread: National Bank of Switzerland

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    Politics.ie Member gerhard dengler's Avatar
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    Default National Bank of Switzerland

    The Swiss Central Bank - National Bank of Switzerland - is unusual in several respects.
    It is controls that country's currency, the Swiss (CHF) Franc but the bank is a privately owned entity.

    However it is the banks investment strategy which is of real interest, because every quarter it publishes updates about it's own financial performance and what it has invest in and divested from.

    The Swiss Central Bank has acquired vast shareholdings in Apple, Facebook, Amazon, Microsoft.

    The fact that each central bank can literally print it's own money, means that that money has to be housed somewhere
    In the case of the Swiss Central Bank some of that printed money is being invested in shares in companies based outside Switzerland.

    The size of the balance sheet for the Swiss Central Bank is $840 billion. That's 127% of Switzerland's annual GDP.
    Other central banks such as the Fed are nowhere near that size compared to the size of their respective national GDP's.

    Good article hearing highlighting some of the issues
    https://qz.com/1140322/check-out-the...ent-portfolio/
    Politics.ie moderators should moderate instead.

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    Quote Originally Posted by gerhard dengler View Post

    The Swiss Central Bank has acquired vast shareholdings in Apple, Facebook, Amazon, Microsoft.
    Indeed and one could do a lot worse than following their investment strategy, although being the belly sliding leeching ethic and morality free zone that bankers are, they'd probably try to charge you for it and being Swiss, they'd probably succeed.

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    Politics.ie Member Wascurito's Avatar
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    Quote Originally Posted by gerhard dengler View Post
    The Swiss Central Bank - National Bank of Switzerland - is unusual in several respects.

    It is controls that country's currency, the Swiss (CHF) Franc but the bank is a privately owned entity.
    The Bank of England was privately owned for nearly all of its existence. It was only nationalized in 1946.
    Pero camarada, ya han pasado.

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    Politics.ie Member Wascurito's Avatar
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    The Swiss had the proverbial champagne problem a few years back when every other major central bank was printing money to beat the band. The CHF was soaring and they had to cut interest rates deep into negative territory. I'm open to correction but I think their interest rates hit a record low for any central bank.
    Pero camarada, ya han pasado.

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    Politics.ie Member clearmurk's Avatar
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    Did we ever get to the bottom of who owns the Irish Central Bank, and its assets?

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    Ah, Switzerland...one of the world's money laundering hotspots.
    I have no money, but I love my life.

  7. #7

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    Quote Originally Posted by gerhard dengler View Post
    The Swiss Central Bank - National Bank of Switzerland - is unusual in several respects.
    It is controls that country's currency, the Swiss (CHF) Franc but the bank is a privately owned entity.

    However it is the banks investment strategy which is of real interest, because every quarter it publishes updates about it's own financial performance and what it has invest in and divested from.

    The Swiss Central Bank has acquired vast shareholdings in Apple, Facebook, Amazon, Microsoft.

    The fact that each central bank can literally print it's own money, means that that money has to be housed somewhere
    In the case of the Swiss Central Bank some of that printed money is being invested in shares in companies based outside Switzerland.

    The size of the balance sheet for the Swiss Central Bank is $840 billion. That's 127% of Switzerland's annual GDP.
    Other central banks such as the Fed are nowhere near that size compared to the size of their respective national GDP's.

    Good article hearing highlighting some of the issues
    https://qz.com/1140322/check-out-the...ent-portfolio/
    Would it be a hedge against other things it has on it books like Gov bonds ?

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    Politics.ie Member gerhard dengler's Avatar
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    Quote Originally Posted by Fractional Reserve View Post
    Would it be a hedge against other things it has on it books like Gov bonds ?
    As in a hedge against a liability that National Bank of Switzerland has on it's books?
    Politics.ie moderators should moderate instead.

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    Quote Originally Posted by gerhard dengler View Post
    As in a hedge against a liability that National Bank of Switzerland has on it's books?
    yeap.If gov bonds go tits up .

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    Politics.ie Member gerhard dengler's Avatar
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    Quote Originally Posted by Fractional Reserve View Post
    yeap.If gov bonds go tits up .
    If you compare 2015 balance sheet to 2016 balance sheet, you'll see that her liabilities have increased from 579 billion in 2015, to 662 billion in 2016.

    Without more disclosures, it would be difficult to know if the share purchase programme is to hedge against the increase in liabilities.

    https://www.snb.ch/en/iabout/snb/ann..._annac_balance

    However the point of the link in the OP is whether or not a central bank should be purchasing shares, and purchasing shares to extent that the SNB is doing.
    Politics.ie moderators should moderate instead.

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