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Adjust remuneration of sight deposits

SNB

The SNB has announced that it will:

  • Lower the threshold factor applied in tiered remuneration of sight deposits from 28 to 25 (from 1 December). Sight deposits above this reduced threshold will continue to be remunerated at SNB policy rate minus 50bp.
  • Sight deposits held to meet minimum reserves will no longer be remunerated.

Rather than having any large macroeconomic impacts, this change is likely to impact the profitability of Swiss banks. Note that the ECB already does not remunerate minimum reserves. That policy was announced on 27 July and came into effect from 20 September.

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