private investment in swiss national bank raises questions about influence and returns

The Swiss National Bank (SNB) has a unique ownership structure that sets it apart from other central banks.

Ownership Structure

Unlike most European central banks, which are state-owned, the SNB operates as a joint-stock company with a mixed shareholder base. This includes cantons, cantonal banks, and private individuals, including foreign investors.

Shift in Shareholder Composition

As of 2023, private shareholders account for approximately 22.7% of the bank's capital, a significant decrease from 45% in the past. This shift reflects a broader trend of increasing public ownership, with cantons holding a majority stake of 58% and cantonal banks contributing an additional 18%.

Trading of SNB Shares

The SNB's shares are publicly traded, allowing private individuals to buy and sell them on the stock exchange. However, the rights of these shareholders are limited. They are entitled to a maximum dividend of 15 Swiss francs per share, regardless of the bank's profitability.

Influence of Private Shareholders

The largest private shareholder, German businessman Theo Siegert, owns 5.01% of the bank, valued at around 18 million Swiss francs. Despite his significant stake, Siegert, like other private shareholders, has no influence over the SNB's monetary policy. The limited rights of private shareholders in the SNB are designed to protect the independence of the bank and ensure that monetary policy decisions are insulated from private interests.

Evolution of Shareholder Base

The SNB's origins date back to the late 19th century when it was established as a joint-stock company in 1905. Over the years, the composition of the SNB's shareholder base has evolved, with the number of private shareholders decreasing and the inclusion of foreign shareholders. However, the influence of private shareholders remains limited, and the SNB's governance framework ensures that its operations prioritize stability and professionalism.

Trending
Subcategory:
Countries:
Companies:
Currencies:
People:

Machinary offers a groundbreaking, modular, and customizable solution that provides advanced financial news and statistical analysis. Our platform goes beyond traditional quantitative analysis, offering users a comprehensive understanding of real-time market dynamics, event detection, and risk analysis.

Address

Waitlist

We’re granting exclusive early access to the first 500 users from december 20.

© 2024 by Machinary.com - Version: 1.0.0.0. All rights reserved

Layout

Color mode

Theme mode

Layout settings