SNB's Martin: Interest rate environment in Switzerland has started to weigh on banks' profitability

Swiss National Bank (SNB) Vice Chairman Antoine Martin is speaking at the post-policy meeting press conference, explaining the decision behind the 25 basis points (bps) interest rate cut to 0%.

Key quotes

Conditions relevant for Swiss financial sector have deteriorated since last financial stability report.

Trade tensions have led to significant increase in financial market volatility.

Interest rate environment in Switzerland has started to weigh on banks' profitability.

SNB supports Swiss government's package of measures for financial crisis prevention and management.

Vulnerabilities in domestic mortgage and residential real estate markets persist.

Comprehensive and timely adoption is essential for strengthening financial stability in Switzerland.

Implementation of basel III final has had no visible impact on credit market activity.

In this context, banks' capital buffers remain key.

Volumes in Swiss credit market have continued to increase, momentum picked up recently.

Non-bank financial intermediaries are a potential source of risk to financial stability.