In a statement published last Monday, the Swiss National Bank (SNB) indicated that it will raise the minimum reserve requirement to 4%, from 2.5% currently.

The Swiss National Bank has indicated that it will adopt an ordinance with effect from 1 July to raise the minimum reserve requirement to 4%. The Bank will also review the calculation of commitments resulting from customer deposits. According to the monetary institution, “since the assets held by banks to meet the minimum reserve requirement are not remunerated, these adjustments reduce the interest expenses of the National Bank”. This strengthening of the Bank's requirements concerning minimum reserves comes at a time when a tightening of the rules concerning the rules for banks considered too big to let them fail is emerging in Switzerland.