Private bankers fed up with Swiss negative interest rates
Swiss private bankers are becoming increasingly fed up with the negative interest rates being charged by the Swiss National Bank (SNB).
Meeting at a private banker’s seminar yesterday in Zurich, wealth managers said the negative rates are impacting their businesses and affecting different investment tools such as bonds.
The rates mean the central bank charges banks for leaving money in its accounts. In total that adds up to CHF 3bn.
The SNB’s head, Thomas Jordan, says Switzerland is bound by the poor economic situation in Europe and needs to keep the franc from soaring on the currency markets.
The worry is many investors are simply hoarding cash and it’s disrupting the housing market. Property prices have been rising as buyers take advantage of low rates – when the rates do start to move higher, it’s likely to lead to mortgage defaults.