What is the Swiss National Bank?
The Swiss National Bank is a constitutionally created central bank of Switzerland. In an effort to control economic growth and averting inflation, the Swiss National Bank (SNB) can change its cash availability and fiscal policy. Its mission is to maintain price stability and increase opportunities for economic growth.
Independent Society, the Swiss National Bank was created in 1906-1907 by the provisions of the Swiss Constitution. Although the company owned by the company, the largest shareholders are other banks that naturally share interest in economic policy. Two thirds of all SNB profits are provided to local governments of Swiss regions, while about 6% are distributed to shareholders. The bank is operated from two main offices in Berne and Zurich with many other regional offices throughout Switzerland. In general, the Board of Directors for the SNB consists of three members of the high level of the two main branches of the bank.
The general targetsnb is to maintain a constant watch and checkeconomy. Like a dog leash, the Swiss National Bank aims to prevent the escape of the economy with inflation. The basic function of the SNB is to set adequate objectives of the price stability, adjust the cash supply accordingly, and then record economic data for a certain period of time until it is possible to set or modify a new goal. In addition to expansion or contraction of money supply, SNB may also affect the economy through interest rate changes and banking reserves.
Despite the relatively small size of the country, Switzerland has one of the greatest reserves of golden expensive Bullions on Earth. These reserves have long been under control of SNB, which maintains a great secrecy about gold. Until the end of the 20th century, the Swiss National Bank generally kept the gold reserves safely locked, but some modern policy changes led to the liquidation of large number of huge gold reserves.
Although the Swiss nation wasThe bank raised as one of the most stable banks in history, it has not always been without controversy. During World War II, Swiss neutrality in war effort meant that the bank continued to solve the Nazi accounts. According to the SNB statement in 1998, the bank admitted that during the war it received more than $ 400 million from Nazi sources in gold, of which at least $ 300 million came from looted countries. Given that the Nazis took advantage of the money to finance their ongoing war effort, this revelation blamed the neutral reputation of Switzerland in the minds of some people.