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. CHF (Swiss Franc)

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

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

    A slang term for the Swiss franc. The Swiss franc, or Swissie, ...
  5. UBS

    A multinational diversified financial services company headquartered ...
  6. Berne Exchange - BX

    One of two stock exchanges in Switzerland, located in the nation's ...
Related Articles
  1. 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.
  2. Trading

    Why Switzerland Scrapped the Euro

    Why did the Swiss scrap its peg to the Euro and what impact will it have globally?
  3. 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.
  4. 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.
  5. Investing

    Use This ETF To Trade The Swiss Franc

    Traders were stunned last week when the Swiss National Bank removed the currency peg that tied the value of the Swiss franc to the euro.
  6. Investing

    Why Swiss Watch Sales are Plummeting (UHRN)

    Sales of Swiss watches have plummeted over the last year due to a broad range of factors
  7. 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.
  8. Investing

    Top 3 Switzerland ETFs (EWL, HEWL)

    Explore detailed analysis and information of the top three Swiss exchange-traded funds that offer exposure to the Swiss equities market.
  9. Investing

    Brexit: Would the Swiss Model Work?

    Learn how the Swiss model would work for the UK after Brexit.
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. 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 >>
  3. What economic indicators are important to consider when investing in the banking ...

    Find out which economic indicators are most useful for investors in the banking sector, especially those influenced by central ... Read Answer >>
  4. 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. Collateral

    Property or other assets that a borrower offers a lender to secure a loan. If the borrower stops making the promised loan ...
  2. Risk-Return Tradeoff

    The principle that potential return rises with an increase in risk. Low levels of uncertainty (low-risk) are associated with ...
  3. Racketeering

    A fraudulent service built to serve a problem that wouldn't otherwise exist without the influence of the enterprise offering ...
  4. Aggregate Demand

    The total amount of goods and services demanded in the economy at a given overall price level and in a given time period.
  5. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  6. Blue Chip

    A blue chip is a nationally recognized, well-established, and financially sound company.
Trading Center