Positions » Positions new CursorDivScroll( 'verlauf', 30, 5 ); Statement from the SBA regarding the activation of the counter-cyclical capital buffer by the Federal Council

  • The SBA recognizes that there is tension in parts of the Swiss real estate market. However, this is focused on a limited number of hot spots in regions and segments. There is currently no nationwide "Swiss real estate bubble". There are also structural reasons for the latest developments in the real estate market, such as increased demand due to immigration.
  • The SBA regrets that the Federal Council has activated the anti-cyclical capital buffer and not waited for the curbing effects of the demand-side measures implemented by banks in July 2012 to fully develop. The self regulation we published in June 2012 (guidelines relating to minimum requirements for mortgage financing) was a major attempt by the banking sector to help ease the situation on the real estate and mortgage market. Given this background, we regret that the Federal Council did not wait for publication of the up-to-date figures for the fourth quarter of 2012.
  • The SBA remains convinced that the anti-cyclical capital buffer is not a suitable tool for achieving the stated aims because it is too broadly defined and creates false incentives. This gives rise to the danger that the banks' credit policy with regard to the economy could be negatively affected given the possibility of a rise in credit costs, specifically for SMEs. The anti-cyclical buffer is a problematic concept due to its broad impact on the mortgage market, the problems associated with its timing, and the fact that there is little practical experience of this new tool.
  • By activating the anti-cyclical capital buffer, Switzerland is once again racing ahead of developments in the international arena. The SBA's expectation is that the Federal Council monitors the situation on the real estate and mortgage market closely and revokes the anti-cyclical buffer at the first signs of easing.