SNB lowers sight deposit remuneration threshold factor
Central bank’s payments to lenders likely to fall in short term
The Swiss National Bank (SNB) announced on August 19 that it would be lowering its sight deposit remuneration threshold factor from a multiple of 25 to one of 22.
The SNB only pays interest on sight deposits up to a certain threshold. This is calculated at the moving average of the depositing bank’s minimum reserve requirements over the preceding three years, multiplied by the applicable threshold factor.
Sight deposits over the threshold are remunerated at the central bank’s policy rate, minus a
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