The negative interest rate of 0.75 percent is a fee that the Bank at all feeds, exchange your balances to third parties (usually other States) to secure the Swiss franc credit from the Swiss national Bank (SNB). Currently there is a total of 778 billion Swiss francs.
But no one is forced to lend his money to the Bank, if he finds a profitable investment. Such a return on beads you will not find – unlike, for instance, UBS chief economist Daniel kalt suspected, but even then, if the SNB raises interest rates. On the contrary, they would have first right to reason, capital of the SNB.
Savings is only abroad
used, The basic problem is rather a glut of Savings. In the last five years the private households and the state have saved an average net of around 75 billion annually. The companies have claimed each of about 15 billion for the financing of their (around 110 billion) investment. The big Rest is financed thanks to lush profits from current revenue.
the bottom line is that every year, around 60 billion Swiss francs had to be invested in the domestic savings abroad, i.e. in foreign currency. Not just anywhere, but in the case of those who have yet to take on debt () and the are always, on balance, the government finances of the loss-making States.
In case of doubt in the realty market
As a view on the development of Swiss foreign assets shows, these have dropped in the longer term no, or even a slightly negative rate of return. In addition, they are subject to strong price fluctuations. Therefore, the investors are better off if they exchange their dubious foreign accounts receivable against a very good local debtors – the national Bank–. This has also pointed repeatedly to the fact that their high balance sheet total is largely due to the repatriation of private foreign assets.
Then there’s the accusation of Daniel is still Cold, whereby the “excessive real estate prices were the direct result of the negative interest rate policy of the national Bank”. In the absence of attractive investment opportunities, the money flow in real estate. There is something in that. In fact, the real estate market offers the investors the Chance to make the most of your excess savings.
By the real estate to buy each other, driving up the prices and ask the tenant to pay up. And not a small amount. According to the real estate consultant Wüestpartner the market in 2017, the value alone of the rental housing 1126 billion Swiss francs and a total cast of return of 6.8 percent. Per year, around 70 billion of which is weak, half is based on increases in value. This is in fact a bigger Problem.
It is a lot of money
But it is. The Problem is not caused by the SNB, but a result of the savings surplus. Unlike Martin Neff, chief economist of Raiffeisen, claims not to harm the SNB also the small savers and pension funds. On the contrary: By the SNB with the negative interest rates prevent appreciation of the Swiss franc, protects our foreign assets to the value of currently 4759 billion Swiss francs. For every one percent appreciation would make us thus, of around 50 billion Swiss francs poorer.