Negative interest rates costs Swiss National Bank billions
The Swiss National Bank’s policy of negative interest rates is costing banks billions of francs.
The Swiss Bankers Association say banks are forking out around CHF 2bn a year due to the minus 0.75% rate.
The aim is to deter investors from holding francs in an effort to stop the value of the currency climbing.
Banks are increasingly passing the costs to savers.
But new rules should bring the amount down. Banks do not have to pay the negative rates on holdings required to make sure the bank remains solvent – that limit is being raised which should cut the amount being paid to the central bank by half.
But the Swiss National Bank says the policy of negative rates is staying - and could go lower.