SNB Cuts Limit Again for Banks to Get Full Interest on Reserves
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The Swiss National Bank will lower the threshold factor for remunerating sight deposits again, making a minor adjustment to how much interest banks earn for parking cash at the institution.
The factor determining which part of lenders’ sight deposits earns the full SNB benchmark rate of 0.25% will be cut to 18 times their minimum reserve requirement from June 1. That’s down from 20 times now, according to a statement published Monday.
This is the third reduction subsequent to an increase in mandatory holdings at the central bank, which has been in force since July. That automatically raised the amount on which financial institutions get the full interest rate. Cutting the multiplier counteracts that effect.
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