Swiss National Bank chair Thomas Jordan, shared how he experienced the days ahead of the Credit Suisse takeover announcement and said why rates are not a risk to financial stability in the country.
The pace of the bank withdrawals which led to the bank's forced takeover by UBS, were a concern for Swiss National Bank (SNB) chair Thomas Jordan, he said at a conference in Lugano Wednesday as reported by «Reuters».
A massive amount of deposits went out in a matter of days, Jordan said, adding that it was something the SNB had to look at very carefully to avoid such bank runs happening in future.
SNB Not to Blame
Furthermore, he said the SNB’s decision to tighten monetary policy over the past year, did not harm financial stability nor did it cause Credit Suisse’s downfall.
In spite of the four interest rate hikes over the past year, inflation remains above the central bank's target of zero to two percent.
