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Some implications of the new agreement on the distribution of SNB profits


  • Daniel Kaufmann


I simulate the distribution of SNB profits to the Confederation and Cantons under a hypothetical scenario, in which the new agreement between the Swiss National Bank and the Federal Department of Finance would have been in place from 2005-2019. All else equal, the new agreement leads to: (i) a higher average profit distribution; (ii) larger annual fluctuations of profit distributions, complicating fiscal authorities' budget planning; (iii) pro-cyclical profit distributions (lower [higher] during economic recessions [booms]). Having said that, the SNB's profit distributions account for a relatively modest share of total government expenditures. In addition, to offset the volatile and pro-cyclical profit distributions, fiscal authorities may borrow on capital markets.

Suggested Citation

  • Daniel Kaufmann, 2021. "Some implications of the new agreement on the distribution of SNB profits," IRENE Policy Reports 21-01, IRENE Institute of Economic Research.
  • Handle: RePEc:irn:polrep:21-01

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    Cited by:

    1. Aymo Brunetti & Reto Foellmi, 2021. "Wenn eine geldpolitische Nebensache zur politischen Hauptsache wird: Das riesige Vermögen der Schweizerischen Nationalbank," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 71(01), pages 1-34, December.

    More about this item


    Swiss National Bank; Federal Department of Finance; agreement on profit distribution;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

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