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Swiss National Bank posts record $143 billion loss in 2022
Global Banking & Finance Review®
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ZURICH(Reuters) – The Swiss National Bank posted an annual loss of 132 billion Swiss francs ($142.67 billion) in 2022, it said on Monday, the biggest loss in its 115-year history.
ZURICH(Reuters) – The Swiss National Bank posted an annual loss of 132 billion Swiss francs ($142.67 billion) in 2022, it said on Monday, the biggest loss in its 115-year history.
The central bank plunged into the red as falling stock and fixed-income markets hit the value of its share and bond portfolio, while the appreciation of the Swiss franc also had a negative impact.
Monday’s figure, which marked a reverse from a 26 billion franc profit in 2021, was bigger than the previously biggest loss of 23 billion francs chalked up in 2015. It is equivalent to slightly more than the annual GDP of Morocco.
($1 = 0.9252 Swiss francs)
(Reporting by John Revill, editing by John Stonestreet)
A central bank is a financial institution that manages a country's currency, money supply, and interest rates. It oversees monetary policy and aims to maintain economic stability.
Monetary policy refers to the actions taken by a central bank to control the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation and stabilizing currency.
A financial crisis is a situation in which the value of financial institutions or assets drops rapidly, leading to a loss of confidence in the financial system, often resulting in economic downturns.
Financial markets are platforms where buyers and sellers engage in the trading of assets such as stocks, bonds, currencies, and derivatives. They play a crucial role in the economy by facilitating capital allocation.
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