Central Banks
SNB Will No Longer Pay for Deposits to Meet Reserve Needs
- Adjustments will reduce interest costs for the central bank
- SNB already introduced tiered system in September 2022
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The Swiss National Bank is cutting the amount of money commercial lenders can get by parking funds at the central bank, an unexpected move that is set to save it at least 380 million francs ($420 million) per year in interest costs.
As of December, the SNB will stop paying banks for the money they are required to keep at the institution as a minimum reserve, it said in a statement on Monday.