SNB's Equity Too Small for Balance Sheet Risks, Schlegel Says.

The Swiss National Bank's President, Martin Schlegel, believes that the bank's equity is insufficient to cover the risks posed by its large balance sheet. Schlegel suggests that increasing the central bank's capital base should take precedence over distributing profits to the Swiss government and cantons. This may result in the SNB withholding payouts to state coffers, despite recording a solid profit in the first nine months. The institution's substantial balance sheet, largely due to foreign-currency purchases post-2008 financial crisis, is subject to market fluctuations and has led to skipped payouts in recent years. [Extracted from the article]