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At an SNB Money Market Event in Geneva on October 29, 2026, Petra Tschudin and Thomas Moser outlined how the central bank provides liquidity only against sufficient collateral. They said the SNB GC Basket and shared repo-market infrastructure help mobilise collateral, support monetary policy and facilitate payments. The speech describes existing policy and ongoing review; it does not announce a specific change.
Swiss National Bank representatives Petra Tschudin and Thomas Moser outlined the central bank’s approach to providing liquidity against collateral at an SNB Money Market Event in Geneva on October 29, 2026. They described collateral rules as a safeguard for the SNB’s balance sheet and as part of the infrastructure supporting monetary policy operations and smooth payments; the speech did not announce a specific policy change.
The SNB said it provides central bank liquidity to the financial system in carrying out statutory tasks, but does so only against collateral that meets requirements in its collateral policy. The speakers said the policy is intended to make liquidity provision effective, efficient and transparent, while limiting the credit risk the central bank takes on when lending or conducting repo transactions.
The speech connected liquidity provision to three responsibilities under the National Bank Act: implementing monetary policy in the Swiss franc money market, supporting cashless payments and contributing to financial stability. The event’s focus, according to the speakers, was the first two. In the money market, the SNB uses repo operations to provide or absorb liquidity to keep short-term rates close to its policy rate. Banks also need liquidity during the day to settle payments as inflows and outflows occur at different times.
Tschudin and Moser identified the SNB GC Basket as an important part of this framework. The SNB said the basket combines high quality requirements with broad international scope and has become an established collateral standard in the Swiss interbank repo market. A common standard and integrated market infrastructure can help participants mobilise collateral, the speakers said, supporting monetary policy implementation and payments.
Collateral Links Liquidity and Payments
Collateral policy may sound technical, but it affects how liquidity can move through the financial system. Banks need to be able to deliver eligible assets and complete the legal and operational steps required to pledge them. The SNB said a framework that recognises assets market participants can actually provide, and allows them to be mobilised reliably, supports the delivery of central bank liquidity when needed.
The rules also place limits on the SNB’s exposure. If a counterparty cannot meet its obligations, the central bank can sell collateral to recover the value of the transaction, according to the speech. The SNB said this protection helps preserve its balance sheet and financial independence, which it described as important to performing its statutory mandate over time.
The policy has consequences beyond the SNB’s own transactions. If banks share a collateral standard and can use integrated market infrastructure, they may be better able to redistribute liquidity through the repo market. That matters for the operation of short-term money markets and the timely settlement of payments. The speech explained these links but did not quantify their effect on liquidity, market rates or payment performance.
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How SNB Liquidity Operations Work
The National Bank Act assigns the SNB several tasks that involve making liquidity available. In the Swiss franc money market, institutions lend short-term funds to one another, with cash flows settled through sight deposits at the SNB. The SNB uses repo transactions to add or withdraw liquidity, with the stated aim of keeping short-term money market rates close to the policy rate.
The speakers described operations as dependent on prevailing conditions. During the period of negative interest rates, the SNB at times supplied liquidity despite high levels already in the system to counter temporary upward pressure on short-term rates. In the current environment described in the speech—a non-negative policy rate and liquidity that remains high—the SNB uses open market operations to absorb liquidity. The speech also referred to payment-related liquidity and support provided during the Credit Suisse crisis, while saying the event would focus on money-market operations and payments.
The SNB said it reviews its collateral policy on an ongoing basis and adjusts it as necessary in response to market conditions and technological developments. The material provided does not specify a new review outcome or a change to the GC Basket.
“The SNB provides the financial system with central bank liquidity. It always does so against collateral, and this has to meet requirements set out by the SNB in its collateral policy.”
— Petra Tschudin and Thomas Moser, speaking at the SNB Money Market Event
No Specific Rule Changes Disclosed
The speech explains the SNB’s approach but does not announce a change to eligibility requirements, collateral haircuts, operational procedures or the GC Basket. It also does not provide a timetable for any future adjustment. The speakers said policy is reviewed continuously, but the source material does not say whether a particular review is underway or what it might conclude.
The supplied text does not include the full detail of the collateral criteria, any new market data, or quantified estimates of how the shared basket affects liquidity mobilisation. Those points should not be inferred from the description of the policy’s aims. The status and scale of any future operational or technological changes remain unspecified.
Ongoing Review, No Timetable
The SNB says it will continue reviewing its collateral policy and make adjustments when it considers them necessary to reflect market conditions or technological developments. No next decision date, consultation, implementation deadline or planned change was given in the speech. Market participants and readers will need a subsequent SNB publication or announcement for details of any revisions.
For now, the confirmed development is an explanation of how collateral underpins existing liquidity operations, rather than a new measure. The SNB’s future communications would clarify whether its review results in changes to eligible assets, the GC Basket or the infrastructure used to mobilise collateral.
Key Questions
What did the SNB announce on October 29, 2026?
Petra Tschudin and Thomas Moser explained the SNB’s collateral policy at a Money Market Event in Geneva. The speech described the policy and its role; it did not announce a specific change.
Why does the SNB require collateral for liquidity?
The SNB said collateral limits its credit risk. If a counterparty cannot meet its obligations, the central bank can sell the pledged assets, helping protect its balance sheet.
What is the SNB GC Basket?
It is a collateral basket that the SNB described as combining high quality requirements with broad international scope. The SNB said it has become an established standard in the Swiss interbank repo market.
Did the SNB change its collateral rules?
No specific change was disclosed in the speech. The SNB said it reviews its policy on an ongoing basis and adjusts it as needed, but gave no timetable or details of a pending revision.
Source: snb.ch
