International liquidity provision during the financial crisis: a view from Switzerland

Raphael Auer and Sébastien Kraenzlin

Review, 2011, vol. 93, issue Nov, 409-418

Abstract: The authors document the provision of liquidity in Swiss francs (CHF) by the Swiss National Bank (SNB) to banks located outside Switzerland during the recent financial crisis. What makes the Swiss case special is the size of this liquidity provision?at times, 80 percent of all short-term CHF liquidity provided by the SNB?and the measures adopted to distribute this liquidity. In addition to making CHF available to other central banks via swap facilities, the SNB also allows banks outside Switzerland to directly participate in its repurchase agreement transactions. Although this policy was adopted for reasons predating the 2007-09 financial crisis, it proved tremendously helpful during the crisis by providing the European banking system direct access to the primary funding facility for CHF.

Keywords: Switzerland; Liquidity (Economics); Financial crises (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (15)

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Working Paper: International liquidity provision during the financial crisis: a view from Switzerland (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlrv:y:2011:i:nov:p:409-418:n:v.93no.6

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