The SNB wants more leverage against exaggerations on the real estate market
For years, the National Bank has been warning of risks on the housing market. However, its most important remedy has been exhausted. Now it is calling for more regulatory leeway.
The Swiss National Bank (SNB) has warned of vulnerabilities in the country's housing market for years, citing rising prices and the risk of a price correction. The bank's main regulatory tool, the countercyclical capital buffer (CCB), is currently at its maximum limit of 2.5%. SNB Vice President Antoine Martin has called for more regulatory flexibility, suggesting that the CCB limit should be lifted or an additional capital buffer be introduced to strengthen the financial system's resilience.
The International Monetary Fund (IMF) has also recommended increasing the CCB. However, some experts, such as Raiffeisen Schweiz's Chief Economist Fredy Hasenmaile, have expressed doubts about the effectiveness of the CCB in cooling the market.
Written by urgent.news from NZZ Wirtschaft's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
