The Swiss National Bank and its shareholders, a Swiss peculiarity

The Swiss National Bank (SNB) is unique among most European central banks because it is not owned by the federal government. Its shares are held partly by the Swiss cantons and cantonal banks and partly by private citizens, including foreigners. One of the largest shareholders, for example, is a German billionaire. Saverio Simonelli, Professor of Monetary Policy at the Faculty of Economics at Università della Svizzera italiana (USI), discussed this peculiarity in an interview with Tvsvizzera.it.

The Swiss National Bank has been owned by private citizens since its foundation. What is now considered unusual was once quite common. In the 18th century, most continental banks were originally privately owned or operated as commercial banks. Only in the second half of the 19th century were they transformed into institutions with increasing public functions. "This transformation process into public institutions came to an end during the 20th century with the nationalisation of many central banks," Saverio Simonelli explains in his interview with Tvsvizzera.it.

The Swiss National Bank (SNB) was founded with the majority share being retained by the cantons, who still hold 58% of the share capital. The cantonal banks are also major public shareholders, holding 18% of the capital. Since 1952, other public bodies, mainly cities and municipalities, have also become shareholders of the SNB, with their capital share currently standing at just under 1%. The number of private shareholders has decreased from 10,000 to just over 2,600 in 2023, representing about 22.7% of the capital. Since the 1990s, foreign shareholders have also been included, making up about 6% of the capital. "The presence of private capital does not necessarily guarantee the independence of the SNB. It certainly gives the bank a certain financial independence since a bank, even a central bank, is certainly more independent if it has its own capital," comments the USI lecturer.

"The most important question," adds Saverio Simonelli, "is whether this type of shareholding can influence how the SNB manages its monetary policy. Personally, I don't think so. Especially because private share ownership, by law, has many limitations. For example, not all stocks have voting rights, and these shareholders cannot participate in appointing the SNB's general management. In short, private individuals have no say in the monetary policy conducted by the central bank". The rights of private shareholders are strictly limited by the SNB law. They are only entitled to receive a dividend, which is set at a maximum of 6% of the share capital, regardless of the company's performance. This means they can receive a maximum of CHF 15 per share, even if the SNB makes billions in profits. Hence, one might question why private individuals opt to invest in the SNB. "An interesting question that is difficult to answer. However, we can say that the SNB is a unique case because its shares are listed on the stock exchange and can be freely bought and sold. This means that private individuals could potentially experience a capital gain. If someone buys these shares, they could potentially receive remuneration due to the increase in the share price over time".

The full interview by Tvsvizzera. with Saverio Simonelli, is available here.