Analysing Swiss National Bank’s balance sheet

Pick up of balance sheet analysis of central banks is one big positive from the crisis. It is a very interesting field but has been ignored till Fed intervened massively and expanded its balance sheet, followed by others.

SNB balance sheet has also expanded three times from pre-crisis levels. Philipp Hildebrand, Chairman of SNB discusses this in his speech. The balance sheet has expanded on two counts – one buying Swiss govt bonds and two buying foreign exchange.

This extraordinary development in the balance sheet is a direct consequence of monetary policy. The SNB had lowered interest rates sharply during the financial crisis, but by the spring of 2009, the traditional interest rate instrument was practically exhausted.

Consequently – with an incipient threat of deflation – the SNB adopted unconventional measures to loosen the monetary conditions further. By carrying out long-term repo transactions and foreign exchange swaps, acquiring Swiss franc bonds issued by private sector borrowers and purchasing foreign currency, the banking system was supplied with large amounts of liquidity. In the past few months, foreign exchange purchases, in particular, have been an effective instrument for averting deflationary risks. While the liquidity created by purchasing foreign exchange and Swiss franc bonds is of a permanent nature, liquidity resulting from repos and currency swaps is temporary. It flows back automatically when transactions are not renewed. This has occurred to a large extent in the meantime.

The considerable expansion in the SNB’s balance sheet is therefore primarily attributable to the increase in foreign exchange reserves. These have more than quadrupled to just over CHF 230 billion as a result of the interventions since the beginning of the financial crisis.

From today, the SNB will also be publishing information on current foreign exchange reserves on its website ( at the beginning of each month. The high level of foreign exchange reserves will inevitably increase currency risk and mean that debtors are concentrated in a few major countries. These risks ultimately represent the burden the SNB has assumed in order to protect the Swiss economy from the threat of deflation, in line with its mandate.

Balance sheet risks have risen overall. The SNB is now reaping the benefits of having continuously increased its allocation to provisions in previous years. This gave it the room for manoeuvre it needed for measures in times of crisis. The higher allocation to provisions decided on recently has further strengthened the SNB’s capital base. The SNB has sufficient equity capital to withstand even large losses.

Interesting bit. As Switzerland is an open small economy, SNB had to intervene in exchange rate markets and forex reserves forms bulk of its balance sheet now. Forex reserves purchases helped prevent sharp exchange rate appreciation and possible deflation in Swiss economy. Lars Svensson had advocated exchnage rate depreciation as one way to get out of zero bound constraint and possible deflation.  By intervening in forex markets, SNB preveneted appreciation. Not sure, whether any attempts were made to depreciate Swiss Franc.

Great insights…..

6 Responses to “Analysing Swiss National Bank’s balance sheet”

  1. New Balance Men’s MR993 Running Shoe Says:

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  3. Jack loach Says:

    Update .Nov 27 th .2010.

    Nov.23rd – – -Nov.26 th. 2010.
    The following sent to – – – – 312- – Lords – – – – – – House of Lords.
    The following sent to – – – – 651 – – M.P.’s – – – – – House of Commons.


    Pictet & Cie Bank.

    Ivan Pictet.
    Charles Pictet.
    Nicolas Pictet.
    Jacques de Saussure.
    Jean – Francois Demole.
    Renaud de Planta.
    Philippe Bertherat..

    Pictet & Cie.- claim they are the “Rolls Royce”of swiss banks.

    Swiss Banks or more correctly Swizz banks.

    Swizz. —- “ a great disappointment.” or a “ fraud.”

    Fraud. —“ an intentional deception or dishonesty.”— “a crime.”

    Crime. —“ an act committed or omitted in violation of a law.”

    Serious Crimes .
    Conspiring to pervert the Course of Justice.
    Perverting the Course of Justice.
    Contempt of Court.

    Pictet & Cie Bank –Partners –(1996—2010)-liable.
    Peters &Peters – Partners.—(1999—-2010)-liable.

    The bank and it’s officials/lawyers deliberately withheld crucial documents requested under a High Court order. The bank and it’s officials/lawyers deliberately withheld evidence from the Police, and one of it’s account managers Susan Broadhead gave a false witness statement to the Police.
    Another one of it’s managers Nicholas Campiche ( Now Head of Pictet – Alternative Investments.) concocted a letter pretending to be a client and closed his account. The senior partner (Ivan Pictet.) sought to have numerous documents destroyed,along with those copies held in their London office’s of Pictet Asset Management. Initially stating that they were forgeries then their lawyers Peters & Peters – Monty Raphael –and the barrister Charles Flint.Q.C. later had to admit in Court that the documents were genuine.

    British Parliament. Hansard .29th March 2007.
    Barry Sheerman .M.P.—quote.

    ———“ Constituents of mine have lost £2 million through fraud. The fraudster used Pictet & Cie – – a French Bank – – and Pictet Asset Management to back the fraud being perpetrated.””

    (1) It is a criminal offence for a bank to knowingly act for an undischarged criminal bankrupt in so far as it seeks to assist that criminal bankrupt in the fraudulent movement of monies. ( Money Laundering.)

    (2) It is a criminal offence for a bank to lie to the police and the bankrupts trustee in bankruptcy in so far as any knowledge of, or dealings with the bank was refuted .

    (3) A bank can be guilty of Contempt of Court if it fails to comply fully with the Courts order for discovery .

    (4) The banks contempt is further compounded if it fails to address its error after it is specifically drawn to the to its solicitors attention. ( Monty Raphael).

    (5) It is a criminal offence under the Financial Services Act to seek to destroy evidence that might be relevant to an investigation .

    (6) It is a criminal offence not to relinquish control of funds to the Trustee immediately the fact of the bankruptcy is drawn to the banks attention.

    (7) It is a criminal offence to lie or otherwise obfuscate the lawful and proper enquiries of the F.S.A.

    In the F.S.A. cover up , they concluded that there had been “ Rogue” elements in Pictet & Cie’s , London operations . They had been moved from their London Office so who was there left to prosecute. “ Unbelievable.”

    On Dec 9th,2008. the complaint was sent to 150 Members of the House Of Lords and 230 Members of Parliament.

    *** We thank –David Cameron. M.P. ( Canary Wharf Speech.) Dec. 15th. 2008.

    (1) Bankers who behave irresponsibly should face professional consequences.
    (2) If anyone is found to have behaved criminally they must be prosecuted.
    (3) The F.S.A and the Serious Fraud Office should be following up every lead,
    investigating every suspect transaction .
    (4) We need to make it 100% clear –those who break the law should face
    (5) That we make sure we root out any wrongdoing that may have happened, whoever
    is involved, however high or well connected they may be.

    Ivan Pictet.
    Managing partner in Pictet & Cie Bank . — retiring -?. 2010.
    President of the Geneva Financial Centre. —stepping down -2010. ?
    World Bank.committee member.—- ?
    United Nations. Investment Committee member,
    Vice President – Global Humanitarian Forum. — redundant.2010.?
    Member of the Henokiens.
    Blackstone Group — Board Member.
    Past- President – Geneva Private Bankers association.
    Past –President – Geneva Chamber of Commerce and Industry.

    Monty Raphael. ( Peters & Peters.)
    Quote.” —- Doyen of U.K. Fraud lawyers.
    Head of Fraud and Regulatory Dept. —- stepping down, –2009.? Director of the Fraud Advisory panel.
    Member of the Law Society of England & Wales.
    International Bar Association Member.

    Written Parliamentary Questions received by the table office ..

    (1) To ask the secretary of state what steps he is taking to ensure that Swiss Banks such as Pictet & Cie do not evade criminal prosecution under EU law even when the illegal act is committed by a London based subsidiary.

    (2)To ask the secretary of state what steps he is taking to protect the rights of UK citizens who seek redress following criminal activities by Swiss banks with subsidiary offices located in London.

    On Dec 9th,2008. the complaint was sent to 150 Members of the House Of Lords and 230 Members of Parliament.
    On Aug 19th.2009.another complainants file regarding the “cover up” was forwarded to the same 380 members.

    We started our campaign in June 2008 — via the “net” to highlight our fight to get “justice”. In our second year campaign we hoped to reveal further damning evidence . Due to there being an on going Police investigation into our complaint we are at this moment unable to place dozens of documents on to the “net”. Again we thank other “ E- Mailers” for their information in relation to our campaign.

    Quote. ( America’s Top Lawyer .)
    You can be the richest man in the world with the best lawyers that money can buy but you cannot win against a man who has got nothing left to lose and is telling the truth.

    Truth Hurts.
    Ivan Pictet. Announces stepping down from Pictet & Cie. 5th Feb 2010.
    Stepping Down—President of Geneva Financial centre.—2010.
    Monty Raphael. Steps down as head . May. 2009.

    *** We note that there has been a sharp increase in Peters & Peters partners leaving to go to other practices. Moving does not alleviate them of any responsibility from any illegalities that may have occurred at Peters & Peters during their partnership tenure. From 1999 onwards.

    *** Were currently waiting to see if the Police and other Law Enforcement Bodies attempt to cover this case up like their F.S.A. counterparts. If they do –“ then watch this space.”

    We were informed that due to pressure from our M.P. that the Ministry of Justice have asked Lord Myners to investigate our claims that the F.S.A. covered up the illegal activities of Pictet Asset Management. London.

    The consensus of opinion is the Pictet & Cie should be prosecuted , and that their U.K. banking licence should be taken away.

    Their solicitors at Peters & Peters .London — prosecuted and” struck off”..

    *** Started campaign — June 6th.2008.
    2 years —- approx 2million e-mails – – – but still no writs, injunctions or threats of litigation – – – WHY – – – because it is all true.

    *** . The bigger they are — the harder they fall.!!!
    In America —- they would have all been in prison for the last seven years.

    Full Story.
    Go to search box on “Google” and insert ( Ivan Pictet / Monty Raphael) or
    insert ( Pictet & Cie / Monty Raphael ) – – then try it on “Google”.
    Or try on Yahoo. – – – ( Charles Flint Q.C.) .
    Or try on Yahoo – – – ( Nicholas Campiche.)

    Nov.23rd –Nov.26th. 2010 .
    The above sent to —— 312 – – Lords – – – House of Lords.
    The above sent to — –651 – – M.P.’s – – – House of Commons._

  4. dustymarcus42j Says:

    West Yorkshire Police.

    We note that Det Chief Inspector Steven Taylor has been removed as Head of the Economic Crime Unit and demoted to Det. Inspector. ( One down two to go.)

    A file of some 339 pages including scores of documentation has been forwarded to the following — Aug 4-6th .2011.

    640 — Members of Parliament.
    460 — Members of the House of Lords.
    Ministry of Justice.
    F.S.A. – Financial Services Authority.
    Serious Fraud Office,
    Peters & Peters .London. — Solicitors.
    Pictet & Cie Bank — London & Geneva.
    West Yorkshire Police Authority.
    I.P.C.C.— Independent Police Complaints Commission.
    C.C.R.C. — Criminal Cases Review Commission.
    Swiss Ambassador London.

  5. jack loach Says:

    The Criminal Super Class.
    Police. April.2012.

    Over approximately five years of hitting the internet with a case that involves criminality by a major Swiss Bank , Britain’s most prominent fraud lawyer and a regional police force headed by one of Britains top policeman. ( Surely justice should prevail.)

    In fact the complete opposite even though the offences committed are very serious.

    Conspiring to Pervert the Course of Justice.
    Perverting the Course of Justice.
    Contempt of Court.—————— plus a dozen or so smaller offences.

    In the five years some 6-7million e-mails have been forwarded to all Members of Parliaments in Britain and Switzerland, every barrister and chambers in Europe .
    Every law inforcement body in both countries , and America. Even raised in Parliament twice.

    The banking fraternity fully aware of this case still decide to give the Private Banker of the Year Award to Ivan Pictet — Pictet & Cie Bank. ( Him being the person most responsible for the crimes committed by him and his bank partners. )

    The legal fraternity decided that Monty Raphael of Peters & Peters . London became an honourable Queens Counsellor and to rub the salt in six months later made a Master of the Bench. He also was guilty of all the above offences but so what. At this rate he might become King by the end of the year.

    The police ( West Yorkshire Police.) headed by Sir Norman Bettison has not improved as a force on fighting crime. They are now worse than the days of the Yorkshire Ripper , when they had him in custody nine times and let him go. If it hadn’t been for the South Yorkshire Police force catching the Ripper he would have still been at large to day .

    Then they wonder why the man in the street becomes angry and decides to riot.
    Even after five years of exposing their crimes on the internet , they dare not take legal action to stop us — no injunctions — no writs – they can’t risk going to jail.
    All we can do is to continue pressing for justice and up the pressure on the internet. For the next five years and beyond.

  6. jack loach Says:

    Pictet & Cie. Bank – list of crimes.

    1996 — Breach in London.
    2003 — FSA — States rogues operating in Pictet’s –London
    Office . Ivan Pictet said documents were forgeries but
    were lated proved to be genuine. Had documents held
    in London office destroyed. (hoping to hide crimes.)

    2007 — Japan. —- The Securities and Exchange Surveillance
    issued a recommendation that the Prime Minister and
    The Commissioner of the FSA to take disciplinary
    action against Pictet Asset Management. Japan Ltd.

    2008 — Dec. —Pictet Bank state — “ we have never chosen
    any funds linked to Madoff.”

    2011 — Madoff Trustees sue Pictet & Cie. For $156 Million.

    2011— Bank at centre of Bribery and money laundering case.
    Being sued for $350 million. ( In U.S.A.)

    2012.— April.– Geneva Bank Pictet used in Offshore Tax
    Scheme U.S. Authority states.

    2012.— July.– De- Spiegel —- States– Pictet Bank uses
    a letter box company in Panama and a tax loophole in
    London to gain German millionaires as clients.

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