Martin Schlegel, a Swiss central banker, emphasized the need to increase equity at the Swiss National Bank (SNB) to mitigate risks associated with its large balance sheet, which currently stands at CHF840 billion. He indicated that prioritizing capital reserves over profit distributions to the government may lead to no payouts this year, following two years of skipped disbursements after a record loss in 2022. With inflation at just 0.6%, concerns arise about the potential for it to fall below the SNB's target range.
