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Old 28.09.2021, 20:49
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Re: Negative Interest Rates

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Actually no, I had no idea about that. (Mostly because I was busy being a school kid in another country back then...)

I do remember bailing out UBS with my tax money, so I thought this would never happen to any significant bank in Switzerland ever - the whole business model of Swiss banking is trust and security - if I was lookin for skills might I also go to the US or London and I am for sure not looking at Switzerland to have good value for money... so the single reason the rich people of the world park their money here is stability and safety. So simply put: the Swiss government would do anything in their power to prevent that from happening - not to save those investments but to save the Swiss banking industry - the fallout if one of the large ones would go bust would be brutal.
Well, as a result, the „Swiss banks“ have long stopped being „Swiss Banks“. So your money is globally secured between places like the US or UK etc. Any insurance on your money in Switzerland is determined however by FINMA regulations, among many others. And that is pretty limited.

It has very little to do with the Swiss government ��
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  #62  
Old 28.09.2021, 21:52
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Re: Negative Interest Rates

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And that is pretty limited.
That may depend on who gets bailed out.

In short, FINMA has the authority to decree a bail-in. That is, FINMA can force the creditors to recapitalise the bank, provided that doesn't leave them worse off than if the bank went bankrupt (interesting word btw, isn't it). Now, since the alternative is hypothetical, and given the UBS bailout as a precedence, it's easy to see when that will be implemented and where that will leave the small people's savings above 100k.

These days holding a Nestlé bond, even with a slightly negative interest rate, looks safer than leaving the money in a cash account with UBS, CS, or ZKB. The small banks should be fine, they don't do much stuff involving derivatives and massive leverage.

This is no Swiss specialty, the regulatory framework was defined by and agreed upon during the G-20 Summit 2014 in Brisbane.
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Old 03.10.2021, 15:19
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Re: Negative Interest Rates

Does anyone know if BCV applies negative rates on regular current accounts above a given threshold?
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