Swiss National Bank
Switzerland's central bank, responsible for monetary policy, Swiss franc banknotes and major elements of the country's financial infrastructure.
Last updated November 4, 2026
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Overview
The Swiss National Bank (SNB) is the central bank of Switzerland. Its constitutional and statutory mandate is to pursue a monetary policy serving the interests of the country as a whole, with price stability as its primary objective while taking economic developments into account. In practice, the bank defines price stability as a rise in the national consumer price index of less than 2% per year over the medium term. It implements policy through an inflation forecast, a policy interest rate and, when necessary, foreign-exchange-market intervention. The institution has a distinctive legal form. It is an Aktiengesellschaft, or joint-stock company, but operates under special federal legislation rather than as an ordinary private corporation. Its shares have been traded on the SIX Swiss Exchange since 1907, although shareholder powers are limited by the bank's public mandate and private investors' voting rights are restricted. As of the end of 2021, public shareholders held approximately 78% of voting shares. The SNB has two head offices, in Bern and Zurich, reflecting its national role and Switzerland's multilingual federal structure. The bank was established after decades of debate about the fragmented Swiss note-issuing system. During the nineteenth century, numerous commercial banks issued banknotes. Constitutional reforms first gave the Confederation authority over note issuance and later reserved the privilege exclusively to the federal level. The National Bank Act of 6 October 1905 created the institutional framework, which entered into force in January 1906; the SNB began operations on 20 June 1907. The SNB is the sole issuer of Swiss franc banknotes and is responsible, on behalf of the Confederation, for distributing coins. It also provides and oversees important payment infrastructure. Interbank payments are settled through Swiss Interbank Clearing, using sight-deposit accounts held at the SNB. In addition, the bank manages Switzerland's monetary gold and foreign-currency reserves, conducts foreign-exchange transactions, and serves as banker to the Swiss Confederation by processing government payments, handling securities and conducting money-market and foreign-exchange operations. Its responsibilities extend beyond conventional monetary policy. The SNB monitors systemic risks, oversees systemically important payment and securities-settlement systems, contributes to financial-system stability and participates in international monetary cooperation. It produces statistics covering banks and financial markets, the balance of payments, the international investment position and Swiss financial accounts. It also maintains an economic research programme and operates the Study Center Gerzensee, which supports research and training in monetary economics and central banking. The bank has played an unusually visible role in major financial and currency crises. During the 2008 global financial crisis, it helped the Swiss government structure assistance for UBS by placing roughly CHF 60 billion of illiquid assets in the SNB StabFund. The vehicle was later wound down at a profit for the SNB. In September 2011, amid intense appreciation pressure on the Swiss franc and the euro-area crisis, the bank introduced a minimum exchange rate of CHF 1.20 per euro and committed to buying foreign currency in potentially unlimited quantities. It abandoned that floor on 15 January 2015, producing substantial market disruption and renewed debate about central-bank communication. In March 2023, the SNB supplied CHF 50 billion in liquidity assistance to Credit Suisse after market confidence deteriorated. When UBS subsequently agreed to acquire Credit Suisse with support from the Swiss authorities, the SNB offered liquidity assistance of up to CHF 100 billion. These interventions illustrated the bank's role as lender of last resort and as a participant in arrangements intended to preserve financial stability. The SNB invests its currency reserves, including in equities, subject to exclusion criteria concerning internationally prohibited weapons, serious human-rights violations and systematic severe environmental damage. Its investment policy has nevertheless drawn criticism from environmental organizations and academics because of the carbon footprint associated with parts of its portfolio. The bank's balance-sheet results can vary sharply with exchange rates, equity prices, bond yields and gold prices. It reported a CHF 132 billion loss for 2022, a result that affected expected distributions to the Confederation and cantons. The SNB remains an active, independent public institution whose decisions influence the Swiss franc, financial conditions and the international perception of Switzerland's monetary stability.
History
Switzerland's central-banking system emerged from nineteenth-century concern about the number of institutions issuing banknotes. More than fifty commercial banks were issuing notes by the middle of the century, creating fragmentation and uneven confidence in the currency. A constitutional revision in 1874 assigned the Confederation responsibility for legislation concerning banknote issuance. A further revision in 1891 reserved the exclusive right to issue banknotes to the Confederation, establishing the constitutional basis for a national institution. The National Bank Act was enacted on 6 October 1905 and came into force on 16 January 1906. The Swiss National Bank began business on 20 June 1907. It assumed the central role in issuing Swiss franc notes, managing monetary reserves and supporting the country's payments system. During the First World War, it issued small-denomination notes at the direction of the Federal Council, reflecting the shortage of coins and the extraordinary demand for cash. In 1936, following the devaluation of the Swiss franc, the bank created or received resources for a currency-equalisation reserve intended to provide a buffer in future emergencies. The SNB's conduct during the Second World War remains one of the most controversial chapters in its history. Switzerland was a major continental European gold-trading centre, and the bank conducted transactions with both Axis and Allied sources. Later investigations, including the Bergier Commission's work, concluded that the SNB had received substantial quantities of gold originating from Nazi-controlled sources, including gold looted from occupied countries. The bank's wartime role has therefore been examined in connection with Switzerland's financial relations with Nazi Germany and the broader history of Nazi gold. These findings generated lasting criticism of the institution's due diligence and wartime trading practices. In the post-war period, the SNB expanded its institutional, technical and research functions. In 1981 it collaborated with Orell Füssli and Landis+Gyr researchers on banknote design and security technology. By the early 1990s it operated through branches and sub-branches across the cantons and had several hundred employees. Its governance combined a shareholder meeting, a Bank Council and a three-member Governing Board, with the latter responsible for monetary policy and executive management. A major constitutional change took effect in May 2004, when Article 99 of the Federal Constitution formalized the SNB's independence from the government. The change reinforced the principle that monetary policy should be conducted independently while remaining accountable within Switzerland's constitutional and statutory framework. The bank's principal policy strategy centers on price stability, an inflation forecast and an operational interest-rate target. Its definition of price stability is inflation below 2% per year over the medium term, while economic developments are considered in setting policy. During the 2008 global financial crisis, the SNB and Swiss authorities supported UBS through a special-purpose vehicle, the SNB StabFund. Approximately CHF 60 billion of illiquid assets were transferred into the vehicle. As financial markets recovered, the SNB was able to exit the position and ultimately recorded a profit of approximately CHF 5 billion on the arrangement. The European sovereign-debt crisis created intense upward pressure on the Swiss franc as investors sought safe-haven assets. On 6 September 2011, the SNB imposed a minimum exchange rate of CHF 1.20 per euro and committed to defending it through foreign-currency purchases. The policy lasted more than three years, but on 15 January 2015 the bank ended the floor, citing changed conditions in the euro area and the limits and risks associated with continued defense. The decision caused substantial market volatility and became one of the most consequential central-bank announcements of the decade. The SNB subsequently used negative interest rates and foreign-exchange interventions as tools against excessive franc appreciation. It also continued to expand and manage large foreign-currency reserves, including equity investments. Its portfolio policies exclude certain activities, but environmental groups and academics have criticized the climate impact of its investments. In 2022, falling valuations across global financial markets produced a record-scale annual loss of CHF 132 billion. The result affected distributions that the Confederation and cantons had expected in their budgets. In March 2023, the SNB became central to the emergency response to Credit Suisse's loss of market confidence. It provided CHF 50 billion in liquidity assistance and subsequently made available up to CHF 100 billion in support for the UBS acquisition of Credit Suisse. The SNB continues to combine monetary-policy operations with note issuance, reserve management, payments settlement, financial-stability analysis, statistical production and services for the Swiss Confederation. Its institutional identity rests on public purpose, operational independence and the maintenance of confidence in the Swiss franc.
- 2025
Policy rate reaches zero
[3]The SNB cut its policy rate by 25 basis points to 0% amid exceptionally low inflation.
- 2023
Credit Suisse liquidity support
[1]The SNB provided CHF 50 billion in emergency liquidity and offered up to CHF 100 billion in support connected with UBS's acquisition of Credit Suisse.
- 2015
Euro exchange-rate floor abandoned
[1]The SNB discontinued the minimum exchange rate on 15 January, prompting sharp volatility in financial markets.
- 2011
Euro exchange-rate floor introduced
[1]The bank set a minimum exchange rate of CHF 1.20 per euro and pledged to defend it through foreign-currency purchases.
- 2008
UBS stabilization programme
[1]The SNB established the SNB StabFund to hold roughly CHF 60 billion of illiquid UBS assets during the global financial crisis.
- 2004
Formal constitutional independence
[1]The entry into force of Article 99 of the Federal Constitution formalized the SNB's independence from the government.
- 1981
Banknote-security research collaboration
[1]The SNB participated with Orell Füssli and Landis+Gyr researchers in work related to banknote design and optical security.
- 1936
Currency-equalisation reserve established
[1]Following the devaluation of the Swiss franc, resources were set aside to provide an emergency monetary buffer.
- 1907
SNB begins operations
[1]The Swiss National Bank started business on 20 June and became Switzerland's central institution for banknote issuance and monetary functions.
- 1905
National Bank Act adopted
[1]The law creating the institutional framework of the Swiss National Bank was enacted on 6 October.
Products and positioning
An independent, stability-focused central bank combining a strong price-stability mandate with responsibility for currency issuance, reserves, payment infrastructure and financial-system resilience.
Currency issuance · 1907
Swiss franc banknotes
The SNB holds the exclusive privilege to issue Swiss franc banknotes. It determines the design, security features and denominations in cooperation with specialist partners, puts notes into circulation through the banking system and withdraws damaged or obsolete notes. The banknote function is central to public confidence in the Swiss franc and is distinct from the Confederation's responsibility for coin issuance.
Central banking · 1907
Monetary policy
The SNB's monetary-policy framework is based on a definition of price stability, a conditional medium-term inflation forecast and an operational policy rate. The bank may supplement interest-rate decisions with foreign-exchange intervention and other balance-sheet measures when exchange-rate movements threaten price stability or financial conditions.
Payment infrastructure
Swiss Interbank Clearing
Swiss Interbank Clearing is Switzerland's core interbank payment-settlement system. Participating institutions settle payments through sight-deposit accounts at the SNB, allowing the central bank to support the safety and continuity of domestic payment flows.
Reserve management · 1907
Currency reserves and foreign-exchange operations
The SNB manages Switzerland's foreign-currency and gold reserves. These assets support confidence in the Swiss franc, provide protection during crises and give the bank the capacity to intervene in foreign-exchange markets. The portfolio includes bonds, equities and other reserve assets subject to investment guidelines.
Public financial services · 1907
Services for the Swiss Confederation
Acting as banker to the Confederation, the SNB processes government payments, handles securities custody, issues money-market debt register claims and bonds, and conducts selected money-market and foreign-exchange transactions for the federal government.
Statistics and research
Economic and financial statistics
The bank compiles and publishes data on banks, financial markets, the balance of payments, Switzerland's international investment position and national financial accounts. Its research programme supports monetary-policy analysis and broader understanding of the Swiss economy.
Controversies
2017
Environmental criticism of reserve investments
Environmental organizations and academics criticized the carbon emissions associated with parts of the SNB's equity portfolio and argued that its investment approach did not sufficiently reflect the Paris climate objectives.
1998
Investigation into Nazi gold transactions
The Bergier Commission concluded that the SNB had received substantial gold from Nazi-controlled sources during the Second World War, including gold looted from occupied countries. The findings intensified scrutiny of the bank's wartime transactions and its handling of provenance questions.
Brand decisions
2025
Policy rate reduced to zeroOtherBackground
Inflation weakened to exceptionally low levels, while appreciation pressure on the Swiss franc created concerns for exporters and domestic price stability.
Action taken
The SNB reduced its policy rate by 25 basis points to 0% and signaled readiness to consider negative rates and foreign-exchange intervention if needed.
Aftermath
The decision restored a zero-rate setting and kept additional easing tools available.
2023
Emergency liquidity assistance for Credit Suisse and UBS acquisition supportOtherBackground
Credit Suisse suffered a rapid loss of market confidence and depositor withdrawals after concerns about its financial position intensified.
Action taken
The SNB provided CHF 50 billion in liquidity assistance to Credit Suisse and offered up to CHF 100 billion in liquidity support connected with UBS's takeover.
Aftermath
The intervention supported the authorities' effort to prevent an uncontrolled failure of Credit Suisse and complete its acquisition by UBS.
Liquidity assistance. CHF 50 billion initially; up to CHF 100 billion connected with the UBS acquisition (March 2023)
2015
Abandonment of the euro exchange-rate floorStrategyBackground
The SNB judged that changing European monetary conditions and the growing cost and risks of defending the floor made the existing arrangement unsustainable.
Action taken
The bank discontinued the CHF 1.20 per euro minimum exchange rate and adjusted its interest-rate policy.
Aftermath
The Swiss franc appreciated sharply and markets experienced major volatility. The decision became a defining example of the market impact of central-bank communication.
2011
Introduction of the CHF 1.20 per euro minimum exchange ratePrice changeBackground
Safe-haven demand and the euro-area crisis drove strong appreciation of the Swiss franc and raised recession risks for Switzerland.
Action taken
The SNB committed to preventing the euro from trading below CHF 1.20 and said it was prepared to buy foreign currency in unlimited quantities.
Aftermath
The floor remained in place until January 2015, while the SNB accumulated a large foreign-currency balance sheet.
2008
Creation of the SNB StabFund for UBS assetsOtherBackground
UBS faced severe pressure during the global financial crisis because of illiquid and troubled securities.
Action taken
The SNB created a special-purpose vehicle and transferred approximately CHF 60 billion of UBS assets into it with support from the Swiss authorities.
Aftermath
The SNB later exited the position and reportedly earned approximately CHF 5 billion from the arrangement.
Approximate value of transferred assets. CHF 60 billion transferred to the SNB StabFund (2008)
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