In Switzerland, there is close co-movement between investment income and current account balances. Historically, surpluses have been the norm for Switzerland. Our current account has recorded almost uninterrupted surpluses since 1960. Although official time series do not extend further back than 1947, unofficial current account estimates show that, even at the beginning of the 20th century, the Swiss were saving more than they invested domestically.4 So, already then, a savings surplus was being invested abroad, laying the foundations for today’s international investment position, which is large by global standards. This took place against the background of an ever-appreciating Swiss franc during the post-World War II period.5 Most of the savings surplus is invested in securities, i.e. portfolio investment, and in production facilities abroad, i.e. direct investment.6 In this way, Switzerland has built up a strong net international investment position, most of which is held by multinational companies and pension funds.7 Let's now turn to income from services. Here, there are two drivers of the current account surplus: cross-border financial services and merchanting. Again, both activities are primarily driven by international financial markets and global demand for raw materials, and are not sensitive to movements in the Swiss franc. I don’t think I need to say much about receipts from cross-border financial services. The importance of the financial sector for our country is well known. Receipts from Swiss banks’ and insurance companies’ foreign customer business flow into the current account. In these cross-border transactions, banks’ financial services are the largest contributor.

People experiencing such issues can go to the local branch network of Banque de France all over the country. Along with other stakeholders, we help them finding solutions to their financial difficulties. In 2018, more than 180.000 such situations were examined. Also, through our financial institutions supervisory arm, the ACPR, and in relation with the financial markets authority AMF, we make sure that banks and insurers have effective procedures in place to detect fragile clients and provide adequate solutions to them. This means for them proposing the specific banking offer I mentioned earlier to all those who might need it. But also ensuring that financial products are not sold to people who do not understand or cannot afford them – it can be a new consumer loan that would lead to overindebtedness, or an insurance policy that clearly does not fit the clients’ needs. In an ageing world, we need to make sure that older customers are not taken advantage of by abusive or deceptive practices. This part of our market conduct role is increasingly important for us and other authorities internationally – the 2019 Japan G20 Presidency has put it forward. Finally, to help improving financial literacy, Banque de France is the national coordinator of the involved stakeholders in that area. This is of course especially important for those at risk of financial exclusion. In that role, we notably provide specific tools, resources and training for social workers who are in touch with these people.