The rise of the Swiss franc in 2022 triggered a historic setback for the Swiss National Bank, marking the largest loss in its long history. Recent statistical data from Switzerland’s financial regulator reviewed by Der Spiegel show a substantial deficit for the nation’s central bank.
The surge in the franc’s value put enormous pressure on the SNB, resulting in record losses for the year 2022. Preliminary figures indicated that the Federal Reserve also faced a sizable shortfall, amounting to 132 billion francs for the same period, underscoring the broad challenges confronted by major central banks during a phase of rapid currency movements and high interest-rate expectations. These figures highlight the magnitude of the risk central banks bear when exchange rate trajectories run contrary to their policy aims.
To put the annual performance into perspective, SNB profits in 2021 reached 26.3 billion francs. In that year, government and cantonal authorities received a combined payment of 6 billion francs, while shareholders earned a dividend of 15 francs per security. This comparison underscores the swing from a strong profit year to a foundational loss, reflecting how exchange rate effects can dramatically alter the bottom line for a national monetary authority.
Looking ahead, the regulator flagged continued financial pressure for the year 2023, with management signaling a readiness to reassess certain operations in light of the negative results carried from 2022. The note issued by the central bank indicated that the historical record still recognizes 2015 as the previous peak for losses, when a 23 billion-franc shortfall was recorded. The evolving risk landscape since then has reinforced the need for prudent balance-sheet management and careful policy communication in response to volatile currency markets.
Meanwhile, developments in the private banking sector added another layer of attention to the Swiss financial system. On October 3, leadership at Credit Suisse acknowledged ongoing difficulties, with CEO Ulrich Körner describing the situation as entering a critical moment. Market valuations illustrated the severity of the shift; the bank’s market capitalization stood at roughly 22.3 billion dollars a year earlier and had declined to around 10.4 billion dollars more recently, with share prices retreating by over half in the previous year. These market dynamics echo broader concerns about bank resilience, risk management, and the potential implications for financial stability in a small, open economy where global capital flows can quickly affect domestic sentiment. [Source synthesis from regulatory releases and market data]