DEFINITION of 'Swiss National Bank'

The Swiss National Bank is the bank that is responsible for setting Switzerland's monetary policy. It is also responsible for issuing Swiss franc banknotes. About 55% of the shares of the Swiss National Bank are owned by cantons (states) and state-owned banks of Switzerland and the remaining shares are traded on the Swiss Stock Exchange (SWX) under the symbol SNBN. The primary goals of the Swiss National Bank include ensuring price stability, ensuring the supply of cash in Switzerland and supplying the Swiss money market with liquidity when needed.

BREAKING DOWN 'Swiss National Bank'

The Swiss National Bank has offices in Basel, Geneva and Zurich and was officially open for business on June 20, 1907. In 1910, the Swiss National Bank was made the sole maker of the bank note and in 1991, it was granted permission to be a member of the International Monetary Fund (IMF). The Swiss National Bank is also responsible for managing Switzerland's gold reserves, which were worth 30.5 billion Swiss Franc in July 2008.

RELATED TERMS
  1. CHF

    In currencies, this is the abbreviation for the Swiss franc. ...
  2. SIX Swiss Exchange

    Switerzland's primary stock exchange, located in Zurich. The ...
  3. USD/CHF (U.S. Dollar/Swiss Franc) ...

    The abbreviation for the U.S. dollar and Swiss franc (USD/CHF) ...
  4. CHF (Swiss Franc)

    The currency abbreviation for the Swiss franc (CHF), the currency ...
  5. Gnomes Of Zurich

    A disparaging term used to describe Swiss bankers. Labor party ...
  6. Swissie

    A slang term for the Swiss franc. The Swiss franc, or Swissie, ...
Related Articles
  1. Trading

    Is The Swiss Franc A Good Investment?

    Individual investors, businesses, financial institutes and even countries have been keeping their money in Swiss francs.
  2. Financial Advisor

    Buying Swiss Francs as a Long-Term Investment: Risks & Rewards

    Learn about the risks and rewards of investing long term in Swiss francs and the history of the Swiss franc's exchange rate against the dollar.
  3. Trading

    Is The Swiss Franc A Safe Haven?

    We examine when and why there are runs on Swiss francs.
  4. Investing

    This Central Bank Owns U.S. Equities Worth 20% of GDP

    Discover more about Swiss National Bank's holdings of financial assets, and look into its recent accumulation of foreign equities.
  5. Investing

    How To Invest In The Swiss Franc

    The Swiss franc is one of the safe havens of the investing world. Learn how invest through ETFs, forex, futures, and binary options.
  6. Trading

    The Swiss Franc: What Every Forex Trader Needs To Know

    Find out what you need to know before you start trading the Swiss franc.
  7. Investing

    Why The Swiss Franc Is So Strong

    We look at the recent and historic strength of the Swiss franc, as well as recent actions by the Swiss National Bank.
  8. Taxes

    Switzerland's Declining Tax Haven Appeal

    Switzerland's tax haven allure is being threatened by efforts by the US and other governments to make Swiss banks give up their much-vaunted secrecy.
  9. Investing

    Switzerland's Biggest Equities ETFs

    Despite challenging times for some Swiss firms, investments in the Swiss stock market are still considered a safe haven and ETFs are an interesting option.
  10. Investing

    5 Central Banks That Are Publicly Traded

    Learn about five central banks that have publicly traded shares. Explore shareholder voting and dividend rights for public and private holders.
RELATED FAQS
  1. Why is Switzerland considered a tax haven?

    Learn how Switzerland is considered a tax haven, even though its government has signed agreements to disclose information ... Read Answer >>
  2. How do I open a Swiss bank account, and what makes them so special?

    Surprisingly, opening a Swiss bank account is not that much different from opening a standard bank account because you have ... Read Answer >>
  3. What developed countries have the highest concentration in the banking sector?

    Learn about the developed countries that have the greatest concentration in the banking sector and the most important emerging ... Read Answer >>
  4. What are the Gnomes of Zurich?

    The "Gnomes of Zurich" is a euphemism for Swiss bankers. The name is meant as an insult because gnomes, most often found ... Read Answer >>
  5. How are international investment banking practices regulated?

    See which international organizations are responsible for overseeing and regulating global investment banks, including the ... Read Answer >>
  6. How does the division of regional and national banks affect investing in the banking ...

    Research the difference between investing in regional versus national banks, and find out which strategy is the best fit ... Read Answer >>
Hot Definitions
  1. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  2. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  3. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  4. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  5. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  6. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
Trading Center