Factor for sight deposits reduced to 13.5
The Swiss National Bank will reduce the factor for the limit on interest-bearing sight deposits from 15 to 13.5, effective August 1, 2026. This adjustment aims to ensure effective monetary policy implementation and support an active money market.
Factor cut to 13.5
Effective August 1, 2026, the Swiss National Bank will reduce the factor for the limit on interest-bearing sight deposits for institutions subject to minimum reserve requirements from 15 to 13.5. The calculation basis for this limit remains unchanged: it corresponds to the rolling three-year average of minimum reserve requirements, multiplied by the currently applicable factor.
Other giro account holders continue to have a fixed limit.
Sight deposits up to this limit are remunerated at the SNB policy rate, while those exceeding the limit are remunerated at the SNB policy rate minus a discount.
Sight deposits held to fulfill minimum reserve requirements are not remunerated.
This operational change ensures precise control over liquidity conditions within the banking system.
Counteracting reserve increases
The reduction in the factor is designed to counteract the increase in limits that resulted from the higher minimum reserve requirements introduced on July 1, 2024.
By adjusting this factor, the SNB aims to maintain the effectiveness of its monetary policy implementation and foster an active money market.
The National Bank regularly reviews the remuneration of sight deposits and makes adjustments as needed to ensure the operational framework remains robust.
Importantly, this factor adjustment does not alter the current monetary policy stance of the SNB, but rather fine-tunes its technical framework.
Precision in liquidity management
This technical adjustment highlights the SNB's commitment to precise liquidity management.
It ensures the operational framework remains effective for transmitting monetary policy signals, even as reserve requirements evolve.
For banks, this means a subtle recalibration of incentives for active money market participation.