Central financial institution losses in 2022: Central banks of Switzerland, Sweden and Germany

The Swiss central financial institution has announced its annual outcome for 2022:

The loss on overseas forex positions amounted to CHF 131.5 billion and the loss on Swiss franc positions was CHF 1.0 billion. A valuation acquire of CHF 0.4 billion was recorded on gold holdings. Working bills got here to CHF 0.4 billion.

For the monetary yr simply ended, the SNB has set the allocation to the provisions for forex reserves at CHF 9.6 billion. After taking into consideration the distribution reserve of CHF 102.5 billion, the web loss involves CHF 39.5 billion. Pursuant to the provisions of the Nationwide Financial institution
Act and the revenue distribution settlement between the Federal Division of Finance and the SNB, this internet loss precludes a distribution for the 2022 monetary yr. This impacts each dividend funds to the SNB shareholders and the revenue distribution to the Confederation
and the cantons.

In one other improvement, Sweden central financial institution does not pay any dividend to the Swedish Treasury as its fairness has been worn out as nicely:

The Basic Council of the Riksbank has, in accordance with the Sveriges Riksbank Act, submitted a proposal to the Riksdag (the Swedish parliament) concerning the allocation of the Riksbank’s outcomes for the monetary yr 2022. Because the outcomes for 2022 quantity to SEK –80,734 million, the Basic Council proposes that the Riksbank mustn’t pay any dividend to the Treasury.

Germany central financial institution first loss in 40 years:

The financial coverage turnaround formed the Bundesbank’s steadiness sheet final yr. The revenue and loss account for 2022 reported a distributable revenue of zero. This outcome was achieved by tapping €1 billion value of threat provisions. As within the earlier years, no revenue was transferred to the Federal price range. “The Bundesbank sustained distinctive monetary burdens in 2022,” Bundesbank President Joachim Nagel mentioned on the presentation of the Bundesbank’s annual accounts.

This entry was posted on March 6, 2023 at 4:05 pm and is filed beneath Academic research & research papers, Central Banks / Monetary Policy. You’ll be able to observe any responses to this entry by the RSS 2.0 feed.
You’ll be able to leave a response, or trackback from your personal web site.