Fritz Zurbrügg: Current developments in the area of financial stability in Switzerland

Introductory remarks by Mr Fritz Zurbrügg, Vice Chairman of the Governing Board of the Swiss National Bank, at the Media News Conference of the Swiss National Bank, Berne, 13 December 2018.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
13 December 2018

In my remarks today, I will be looking at the current developments in the area of financial stability. I shall look at the big banks first before turning to the domestically focused banks.

Big banks

The financial market situation facing the two big banks has become more volatile since the press conference in June. Given this heightened uncertainty on the markets, the share prices of big banks both in Switzerland and abroad have come under pressure. By contrast, premia for credit default swaps of such banks have remained at a similar level as in June overall.

The SNB's assessment of the situation at the two big banks is essentially unchanged from that at the last press conference. This applies both to resilience and to the orderly resolution of a distressed bank.