The SNB expands the supply of liquidity to Swiss banks

Swiss National Bank (SNB) Vice President Martin Schlegel said in a statement prepared for a press conference on Thursday that “the SNB is expanding the supply of liquidity to Swiss banks.”

Additional comments

It is now possible for all banks to obtain liquidity against securities; previously applied only to large banks.

Banks should be required to hold collateral at all times to obtain SNB liquidity.

These measures will further strengthen the Swiss banking sector.

The SNB’s main tool will be interest rates, but foreign exchange interventions could be used if necessary.