Image from the FCZ – Winterthur match with former central banker Urs Birchler: “We are playing in the Champions League in monetary policy”

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Cheering – he can do it! Urs Birchler (73) gets excited when FC Zurich scores a goal. The book author, retired banking professor and long-standing board member of the Swiss National Bank, visits the Zurich Cantonal Derby FCZ – Winterthur together with Blick business editor Christian Kolbe (57).

Birchler is not only a passionate supporter, but he is still active today: every Thursday at lunch with other football fans. “I’m open to offers from top teams,” says the money expert mischievously.

Luckily: the country club takes the lead after a few minutes. So there’s still time to talk about money, goals, and big banks. And about missed opportunities on and off the field. “I would prefer the nationalization of Credit Suisse to the takeover by UBS. “This would give us time to stabilize the bank.”

missed opportunities

Birchler was responsible for financial stability at the Central Bank and was involved in drafting the “too big to fail” regulation, particularly the part of it that was not implemented at the time, namely the regulated decision of a major international bank. “I’m not angry about it. But the fact that CS has not been bailed out by the state is a missed opportunity,” says Birchler.

The Winterthur team took advantage of the chance and temporarily equalized. “You can’t rely on your own laurels,” Birchler whispered presciently. CS’s collapse did not surprise him. “Nothing lasts forever; this is as true for the financial center as it is for football.” And he means FC Basel, which now finds itself at the bottom of the Credit Suisse Super League table after years of success.

Eighth Federal Council

When it comes to money, it’s always about the sausage. The banking expert bites FCZ’s sausage wholeheartedly, but this sausage receives only “adequate” points in the Blick ranking. Switzerland, on the other hand, is convincing in its monetary policy. “We are playing in the Champions League here,” Birchler said. “But some pressure now needs to be put on the SNB to reduce its balance sheet again.”

With his book, Birchler also wants to draw attention to the power of central bankers, who affect all of our lives with their decisions: “There have always been very powerful national bank presidents, often referred to as the eighth Federal Council.” But as Birchler puts it in perspective, the scope for action is limited. “An SNB governor can first and foremost adjust the interest rate screw; the Bundestag has much more room for manoeuvre.”

Praise from slalom crack

Birchler wants to contribute to the empowerment of voters: “People need to understand what money and monetary policy are really about,” says the author. “I want people to be able to look at the hands of the Jordans and the Lagardes.”

This can be achieved with clearly written text peppered with many anecdotes. Or, says slalom star Ramon Zenhäuser (31), a first reader: “The book reads like a smooth slalom run.”

In the end it is 3:2; FCZ celebrates. Let’s hope that UBS’s game turns out well and Switzerland doesn’t have to bail out the last major bank in a few years. “At some point, an event will come that could shake up UBS,” Birchler notes. “This hangs over Switzerland like the sword of Damocles and is ignored by many.” Urs Birchler’s concern: “A bailout of UBS would throw federal finances overboard. “The nice cushion we created with the debt brake will disappear in an instant.”

Urs Birchler: «Fundamentals of money. Why. How does it work. What will happen?”, Hep Verlag, 2023, 29 francs

Source :Blick