So although there are risks and there is further to go, particularly for SMEs, credit conditions for many companies and households have eased over the past 18 months and this has helped to stimulate activity, particular so within the housing market. Consider next the reduction in economic uncertainty which has probably played a greater role in turning the economy around this year. 2  BIS central bankers’ speeches  Reduced economic uncertainty It seems clear that economic uncertainty has diminished over the past year or so. Think back, for example, to the middle of last year, when the euro area appeared once again to be teetering on the edge. Or even as recently to the beginning of this year, when all the talk at home was of the possibility of a triple dip. To some, appealing to “reduced uncertainty” as a driver of the economic recovery may sound rather vague and nebulous. A convenient ex post rationalisation perhaps for something we don’t really understand.

Seite 7/7  Developments on the Swiss franc capital market and the SNB’s monetary policy Andréa M. Maechler Member of the Governing Board of the Swiss National Bank Money Market Event Geneva, 16 November 2017  Sources: Bloomberg, JP Morgan, SNB  Since start of year, Swiss franc has fallen about 5%, but remains highly valued  1  16.11.2017 Developments on the Swiss franc capital market and the SNB’s monetary policy | Andréa M. Maechler | © Swiss National Bank  Sources: SIX, SNB  Swiss franc bond market has declined slightly despite record-low interest rates in recent years  2  16.11.2017 Developments on the Swiss franc capital market and the SNB’s monetary policy | Andréa M. Maechler | © Swiss National Bank  Sources: SIX, SNB  Growth in Swiss segment is driven by mortgage bond institutions and corporations  3  16.11.2017 Developments on the Swiss franc capital market and the SNB’s monetary policy | Andréa M. Maechler | © Swiss National Bank  Source: SNB  Corporate loans have become less attractive than corporate bonds  4  16.11.2017 Developments on the Swiss franc capital market and the SNB’s monetary policy | Andréa M. Maechler | © Swiss National Bank  Sources: SIX, SNB  Contraction in foreign segment since 2011 due to withdrawal of foreign banks  5  16.11.2017 Developments on the Swiss franc capital market and the SNB’s monetary policy | Andréa M. Maechler | © Swiss National Bank  Sources: Bloomberg, SNB  FX swap market distortions make it more expensive for foreign issuers to raise capital  6  16.11.2017 Developments on the Swiss franc capital market and the SNB’s monetary policy | Andréa M. Maechler | © Swiss National Bank  Low interest rates have made Swiss franc bond market less attractive for foreign investors  73  77  79  21  17  15  11 Source: SNB  72  7  16.11.2017 Developments on the Swiss franc capital market and the SNB’s monetary policy | Andréa M. Maechler | © Swiss National Bank  Source: SNB  Demand for money market debt register claims remains strong despite very negative returns  8  16.11.2017 Developments on the Swiss franc capital market and the SNB’s monetary policy | Andréa M. Maechler | © Swiss National Bank  Sources: Complementa, SNB  Pension funds, a large investor category, are hedging a growing share of their assets  9  16.11.2017 Developments on the Swiss franc capital market and the SNB’s monetary policy | Andréa M. Maechler | © Swiss National Bank  Thank you for your attention.