Sunday , September 27 2020
Home / SNB & CHF / Switzerland Peps Up SMEs

Switzerland Peps Up SMEs

Summary:
How Switzerland peps up SMEs: Banks are encouraged to extend credit (at 0%). The treasury guarantees the loans. The SNB refinances banks and accepts the guaranteed loans as collateral. Fast and efficient. Eventually, some of these loans will turn into grants of course. But that’s ok; the first-best response to a shock with asymmetric effects does involve transfers if markets are incomplete. You Might Also Like BIS Innovation Hub Centre in Switzerland From the SNB’s press release regarding the newly established BIS Innovation Hub Centre in Switzerland: The Swiss Centre will initially conduct research on two projects. The first of these will examine the integration of digital central bank money into a

Topics:
Dirk Niepelt considers the following as important: , , , , , , ,

This could be interesting, too:

FINMA: News writes FINMA rügt Bank SYZ wegen Verstössen in der Geldwäschereibekämpfung

Swiss National Bank writes Monetary policy assessment of 24 September 2020

George Dorgan writes Swiss balance of payments and international investment position: Q2 2020

Vincent Held writes MALOT / VINCENT HELD – DÉCRYPTAGE CRISE DE L’EURO, GRAND RESET, REVENU UNIVERSEL, 5G ET SURVEILLANCE

Switzerland Peps Up SMEsHow Switzerland peps up SMEs: Banks are encouraged to extend credit (at 0%). The treasury guarantees the loans. The SNB refinances banks and accepts the guaranteed loans as collateral. Fast and efficient. Eventually, some of these loans will turn into grants of course. But that’s ok; the first-best response to a shock with asymmetric effects does involve transfers if markets are incomplete.


Tags: ,,,,,
Dirk Niepelt
Dirk Niepelt is Director of the Study Center Gerzensee and Professor at the University of Bern. A research fellow at the Centre for Economic Policy Research (CEPR, London), CESifo (Munich) research network member and member of the macroeconomic committee of the Verein für Socialpolitik, he served on the board of the Swiss Society of Economics and Statistics and was an invited professor at the University of Lausanne as well as a visiting professor at the Institute for International Economic Studies (IIES) at Stockholm University.

Leave a Reply

Your email address will not be published. Required fields are marked *