T +49 (0) 6172 916-3631
info@feri-institut.de
Rathausplatz 8 - 10
D-61348
Bad Homburg
The recent banking problems in the USA and Switzerland direct the focus to the respective central banks and their crisis management options. In the case of Switzerland in particular, there is a problem: the balance sheet of the SNB is already so inflated that its volume is more than 110% of Swiss GDP – a lone peak value next to Japan!
This would noticeably restrict the Swiss central bank's room for maneuver in a financial crisis. This is all the more threatening as the balance sheet total of the (forced to merge) UBS/CS will correspond to around 200% of Swiss GDP – also an extreme value worldwide.
T +49 (0) 6172 916-3631
Rathausplatz 8 - 10
D-61348 Bad Homburg