ZURICH (Reuters) - The Swiss National Bank plans to pay out 2 billion Swiss francs ($2.05 billion) -- and possibly more -- to Switzerland’s federal and cantonal governments after swinging to a big 2019 profit, it said on Thursday.
The SNB expects an annual profit of 49 billion Swiss francs ($50.29 billion),
But it loses now and then:
The profit, after a 2018 loss of 15 billion francs, means the SNB will pay out the maximum agreed amounts to governments for last year. It will discuss possible additional payments with the finance ministry.
It is income averaging over two years, to a 17 billion a year profit and paying 1 billion a year. A tax rate of slightly less than 5 percent.
It is 55% owned by government. It operations seem independent of government.
They have a minus .75% saving rate, who pays that? Not too many,the member banks keep the money off the central bank account.
The bank’s unorthodox policies have also led to a massive swelling in the size of its balance sheet: the SNB is one of the world’s largest investors, with a portfolio of stocks and bonds larger than that of sovereign wealth funds run by oil and gas-rich states such as Qatar and Abu Dhabi.
The market to set the currency is foreign exchange. They mostly hold foreign assets. The Swiss Franc is a share in a large investment bank, a mutual fund. It negotiates its tax rate like any other voter, subject to vote. But it is a government monopoly. There are other investment banks in Switzerland, some of them large and well known. How did the Swiss National get the monopoly? By agreeing to extra taxes?
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