Financial Stability: Swiss National Bank’s Experience

Authors

  • V Dudchenko Украина

Abstract

Ensuring financial system stability is the main aim of the activity, performed by European countries’ national banks. The main issue in terms of the abovementioned aim implementation is providing the financial systems’ perseverance to system risks as well as proper functions’ realization by financial systems’ structural elements. The federal law of Switzerland on the Swiss National Bank defines the particular status and enshrines the principle of the country’s central bank independence. The concept of the former one is designated so: the Swiss National Bank and its authority members while performing their tasks are allowed to accept instructions neither from the Federal Council, nor from the Federal Assembly or any other body. The aforementioned law also comprises the task of promoting the stability of the financial system, financial market infrastructure supervision. [1] So far the main aim of the Swiss National Bank’s monetary policy is ensuring the price stability, taking into consideration economic changes. The formation of modern tool of ensuring Switzerland’s financial system stability occurred influenced by the experience gained in dealing with the effects of financial crises. Let us point out the weak spots of Switzerland’s financial system that appeared under the influence of the factors of the financial and economic crisis of 2008-2009: financial institutes Credit Suisse (Swiss International Finance Group) and UBS (Swiss Global Finance Company); economy’s dependence on the financial sector;

References

Federal Law «National Bank of Switzerland» [Electronic asset] - Access mode to the asset: https://www.webcitation.org/673sHYrIW?url=http://www.snb.ch/en/mmr/reference/snb_legal_NBG_01_01_07/source

Official site of the National Bank of Switzerland [Electronic asset] - Access mode to the asset: https://www.snb.ch/

Published

2020-03-07

How to Cite

Dudchenko, V. (2020). Financial Stability: Swiss National Bank’s Experience . Pridneprovskiy Scientific Bulletin, 11(667). Retrieved from http://www.rusnauka.com/index.php/rusnauka/article/view/1403