SZ SNB Financial Stability Report

Since publication of the last Financial Stability Report in June 2025, economic and financial conditions relevant for the Swiss financial sector have remained challenging, in particular because of the conflict in the Middle East, trade tensions, and the associated geopolitical and macroeconomic uncertainty. Thanks to substantial capital buffers, the Swiss banking sector is well placed to face this challenging environment. Overall, global economic growth was solid going into 2026, but has slowed somewhat since the escalation in the Middle East. Long‑term interest rates have increased against the backdrop of renewed inflationary pressure, due to the recent surge in energy prices, and high public debt in many advanced economies. In Switzerland, by contrast, both inflation and long‑term interest rates have remained at lower levels. In financial markets, the conflict in the Middle East has led to higher volatility, yet the overall reaction has been muted. Global stock prices temporarily declined but remain above the levels at the time of publication of the last Financial Stability Report. Furthermore, global corporate and sovereign credit risk premia temporarily increased to a moderate degree but remain at low levels. Residential real estate prices have Swiss National Bank Warns Current Capital Rules Do Not Adequately Cover Foreign Investment Risks SNB: UBS Capital Levels Adequate Under Proposed Requirements Including Reserves

Since the publication of the last Financial Stability Report in June 2024, economic and financial conditions relevant for the Swiss financial sector have deteriorated, in particular as a result of tensions in international trade and the associated uncertainty. Overall, global economic growth has been moderate, with quite solid growth in the US and China, and moderate growth in the euro area and Switzerland. Inflation still lies above central banks’ targets in many advanced economies and long-term interest rates remain at relatively ...

In this report, the Swiss National Bank presents its assessment of the stability of the Swiss banking sector. The SNB contributes to the stability of the financial system in accordance with the National Bank Act (art. 5 para. 2 (e)). A stable financial system is defined as a system in which the various components fulfil their functions and are able to withstand severe shocks. Moreover, the Banking Act designates certain banking sector functions as systemically important, i.e. they are considered indispensable to the Swiss economy and ...

In this report, the Swiss National Bank presents its evaluation of the stability of the Swiss banking sector. The SNB contributes to the stability of the financial system in accordance with the National Bank Act (art. 5 para. 2 (e)). A stable financial system is defined as a system in which the various components fulfil their functions and are able to withstand severe shocks. This report focuses on Switzerland’s banks, as experience from financial crises shows that financial stability depends primarily on the stability of the banking ...

In the period following the publication of the last Financial Stability Report in June 2021, economic and financial conditions for the Swiss banking system were favourable until the end of the year. Since then, they have become more challenging, particularly due to the war in Ukraine. Overall, the economic recovery from the pandemic has continued. GDP has returned to, or even exceeded, pre-pandemic levels in most countries and unemployment rates have receded globally. In this environment, corporate credit rating indicators have ...

Economic and financial conditions for the Swiss banking sector have remained favourable over the last 12 months. At the same time, tail risks have increased, as a range of asset classes look highly valued by historical standards and political uncertainty is elevated. Along with a strengthening in economic growth, markets have generally been optimistic about global credit quality. This is indicated, for example, by the fact that credit rating upgrades exceed downgrades and by low credit risk premia. In this environment, share prices ...