Fritz Zurbrügg: Introductory remarks, Swiss National Bank news conference

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, 18 June 2020.

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

In my remarks today, I will present the key findings from this year's Financial Stability Report, published this morning by the Swiss National Bank.

The COVID-19 pandemic has led to a marked deterioration over recent months in the economic environment and financial market conditions around the world. This deterioration is also affecting the Swiss banking sector. Extensive support measures taken by governments and central banks have somewhat stabilised the situation on the financial markets. As Thomas Jordan mentioned, the SNB's baseline scenario assumes a partial economic recovery in Switzerland and abroad in the second half of 2020. Yet, despite this expected recovery, the Swiss banking sector, along with the rest of the economy, faces considerable challenges.

Overall, Swiss banks are well positioned to deal with these challenges. They have a solid capital base for managing the heightened risks caused by the pandemic-triggered economic downturn.