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Confederation and bank deposits in SNB reached CHF 567.0 billion on 24 March. According to the SNB on Monday, this is an increase of CHF 51.9 billion compared to the previous week. Such an increase has not been seen in the past few years, when the SNB has sometimes battled against an overly strong franc with large foreign currency purchases. In this regard, demand deposits generally only increased by a few billion francs each week, and in exceptional cases by a little over 10 billion.
The strong increase in demand deposits is likely due to problems at Credit Suisse. When asked by the AWP, St. “I assume that CS is getting the additional liquidity that SNB offers it,” said Thoms Stucki, chief strategist at Wales Kantonalbank.
To come to the aid of troubled CS, SNB had given CS a CHF 50 billion loan mid-month and the bank later withdrew – at least a large part of it.
In any case, Bundestag Karin Keller-Sutter said on Radio SRF’s “Samstagsrundschau” the previous day that CS requested a massive billion from the guarantee given by the federal government and the National Bank last weekend. Money was needed due to the fact that domestic and international customers continued to withdraw money and other counterparty banks demanded collateral.
Other factors that currently affect demand deposits include foreign exchange market interventions and cash withdrawals. According to experts, the biggest impetus last week was the liquidity support from the SNB, which CS and UBS major banks are likely to have used.
The SNB said it generally does not comment on movements in demand deposits.
(SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
