negative interest rate pain, the banks , therefore, your Association is critical of the Central Bank. But what the money would be a political Alternative?
The basic problem of structural change in Europe lies in the lack of. The time was not used, of the debt get rid. Therefore, the ECB and the SNB are in this difficult Situation. We want to but that and more is discussed about the consequences of negative interest rates, without the SNB’s independence into question.
The Central Bank argues that without negative interest rates, the Swiss franc would be revalued.
This is the Narrative of the SNB. But we want to discuss whether this is really so. In our view, it is not mandatory that the Swiss franc appreciates at a slow adjustment away from the negative interest rates. The people bring their money to Switzerland because they are not in search of a safe financial place, negative interest rates, you deter there.
The SNB, the interest rates could increase so slightly in the direction of zero, without the risk of a sharp appreciation of the Swiss franc?
Yes, I think so. A minor adjustment to the negative interest rates appears to us to be possible, without major consequences for the Swiss franc exchange rate. This is the scenario, we want to discuss. No one expects that to change in the Interest rate environment quickly. But we should discuss about the impact of negative interest rates. And parallel to this, the economy must be relieved elsewhere in the framework, for example with respect to the taxes or market access for the banks. The policy must be aware of the fact that the negative interest rates are a burden.
In plain text: they are calling for tax cuts?
The shops are already in the Parliament, but they should be finally decided, such as the Reform of the withholding tax or a partial abolition of the stamp duty. Furthermore, there is the possibility of the banking sector to open up with a workable market access solutions with the EU’s new growth prospects. Thirdly, should be exempted pension funds, which suffer most from the negative interest, in relation to the investment guidelines, restrictions and limits, to be able to your funds in profitable investments to invest. I mean that with improved conditions.
Finance Minister Ueli Maurer wants to know, from the tax relief nothing?
The Federal government fears loss of tax revenue due to the plans of the OECD, according to which the collection of company tax from the markets and less by the country of residence of dependent. The concern I can understand. I’ll give but to bear in mind that reductions in withholding and stamp tax have dynamic effects. The Treasury will occupy the bottom line is more.
For the new growth of your Association on the topic of sustainability. Don’t run after you because the spirit of the times?
no. The Carbon Economy is dead. Companies with a CO2-heavy business model, have no future. To me it is no longer a major concern that Switzerland supports the CO2-heavy economy in the medium to long term. The question is, how and the speed with which this can be achieved. Therefore, the banks need to change their business models. The sustainable business model is the only one that has a future. Our goal, therefore, is Switzerland’s position as a leading financial centre for sustainable Finance.Various financial institutions have changed their investment policy completely.
“A small adjustment in the negative interest rates appears to be possible without consequences for the Swiss franc exchange rate.”
How credible the turn to sustainability is because, when the Credit Suisse helps to bring the oil giant Aramco in the stock market?
It’s about helping a CO2-heavy industry during the exit phase. That’s exactly where our financial services industry must address. I’m not talking about make in the short term, no shops, more CO2-heavy companies. An abrupt exit would have a negative economic impact, which would need to be collected.
But if a Bank borrows a car company money, it has no influence on whether the money will be used for the development of electric cars.
Therefore, the framework conditions are important. If we draw the emissions of carbon dioxide, then it is in the interest of the car industry to accelerate the electric division. The financial industry may not be for the enforcement instrument, in order to stop climate change. It takes a macroeconomic approach.
duties of the bankers Association, for Steering, to reduce the CO2?
But of course. That is unavoidable. If we want to use market-based instruments to reduce CO2, then it needs a steering duties.
Then you will have the results of the election in October, Yes, happy…
…because I’m not so sure we want no bans, but with the market economic instruments, incentives for the economy. The incentive system must be set so that the economy lowers the CO2 as quickly as possible, without a shock. And banks need to make it transparent, how you can assist in this process. You must also include in the advice to customers sustainability stronger.
The Swiss Central Bank wants to have no sustainability considerations are included in its investment policy.
The only way forward is to offer one hundred percent sustainable instruments. Every other business model has no future. This is the Only thing I can say.
For the financial sector is the framework agreement is important. What do you expect?
Prior to the referendum on the termination of the initiative, there will be no movement. But in the meantime, be held in Switzerland, talks about what are the manifestations of the protection of Wages necessary to be able to come up with a well-established Position in Brussels occur. I think the differences can be solved, so that Switzerland can the agreement to 2020 and write. Without the framework agreement there will be no progress on market access, the banks need urgently.
your exchange from the Department of Finance to the bankers Association has triggered criticism, because they had previously contributed to the new regulation on the financial supervision.
The regulation is internally completed, before I was terminated in October 2018. And prior to my termination I had held with the bankers Association, no talks about a possible exchange. Therefore, there has been no conflict of interest. But I admit that, here, a different impression can arise.
Created: 01.12.2019, 21:07 PM