One distinctive feature of the Swiss National Bank is its legal form, which is that of a special-statute joint-stock company whose shares are traded on the stock exchange. Its organisation, supervision and shareholder rights are governed by the National Bank Act.

The role of the shareholders

While the majority of SNB shares are held by the cantons and cantonal banks, private individuals and companies can also own shares. However, the Confederation does not hold any shares in the SNB. Given the special nature of the SNB’s tasks, the rights of the SNB’s shareholders are restricted. For instance, voting rights of private shareholders are restricted to 100 shares, and dividends may not exceed CHF 15 per share. Nevertheless, the fact that the SNB is a joint-stock company is important: it contributes to giving the SNB firm roots in society and helps underpin its independence.

The SNB’s executive and supervisory bodies are the Governing Board, the Enlarged Governing Board and the Bank Council.

The Governing Board

The SNB’s highest management and executive body is the Governing Board, comprising the Chairperson, the Vice Chairperson, and one further Member. The Governing Board is responsible, in particular, for monetary policy, asset management strategy, contributing to the stability of the financial system, and international monetary cooperation.

The Enlarged Governing Board

The three members of the Governing Board and their deputies constitute the Enlarged Governing Board, which is responsible for operational matters. These people are appointed by the Federal Council on the Bank Council’s recommendation. The Federal Council also designates the Chairperson and Vice Chairperson of the Governing Board.

The Bank Council

The Bank Council monitors and controls the SNB’s business conduct and lays down the fundamental elements of its organisation. However, it has no say in the implementation of the SNB’s monetary policy, which is solely the responsibility of the Governing Board.

The General Meeting of Shareholders

The SNB holds its General Meeting of Shareholders in Berne each spring. At that event, votes are held and resolutions passed on matters reserved to the Shareholders’ Meeting. In addition to shareholders, the members of the Governing Board and the Bank Council are also present.

The SNB has two head offices, one in Berne and one in Zurich. It also maintains offices for regional economic relations throughout Switzerland, and since 2013 has a branch office in Singapore as well. The latter’s main role is to manage the SNB’s currency reserves from the Asia-Pacific region.

As stipulated in the Constitution, the SNB must act in the overall interests of the country when reaching all of its monetary policy decisions. It is obliged by Constitution and statute to fulfil its mandate independently. This means that it may not take instruction from anyone – be it the government, a business sector, a political party or the media. The Governing Board alone decides the monetary policy.

Why is this important? In difficult situations, an independent central bank can take decisions that may be unpopular in the short term, but that are better for the economy in the long term. A central bank’s independence is an important prerequisite for price stability, and thus for healthy economic development.

The SNB cannot, however, simply do whatever it wants. Its independence only extends to the performance of its public mandate. In addition, the SNB must regularly present an accountability report to parliament and the public, detailing how it has fulfilled its tasks. The SNB also regularly meets with the Federal Council to discuss current economic developments.