admitted or suspected, are problematic for the reputation of the banks involved, and for the financial sector as a whole. this discussion bis central bankers ’ speeches on the libor is also significant for us, because we use the three - month libor in the implementation of monetary policy. no swiss franc libor distortions relevant to monetary policy have thus far been ascertained. furthermore, an snb survey conducted among banks this year confirmed that the libor remains an important variable for credit transactions, namely for mortgages. of the banks surveyed, 80 % indicated that they use the libor as a benchmark for pricing loans. it also continues to play a key role in the pricing of financial products and derivatives. neither the sharp decline in unsecured loans on the interbank market nor the incidents of manipulation have so far changed this. in july 2012, the financial services authority ( fsa ) in the uk was commissioned to undertake a review on reforming the libor. at the end of september, the working group convened for this purpose presented its findings in the wheatley review, which included a series of proposed measures. these aim to prevent further attempts at manipulation, and to restore confidence in the libor. the report recommends, inter alia, that rate - setting processes and their oversight be improved, and that certain maturities and currencies be withdrawn. under the proposals, the three - month swiss franc libor will continue to be determined. thus at present, there are no consequences for the implementation of our monetary policy. discussions are also currently underway at the international level on the meaning and structure of benchmark interest rates on money markets. the snb, as member of a bis working group, is also involved in these discussions. from the point of view of monetary policy and financial stability, the working group identifies core requirements for credible and robust reference rates. central banks or banking oversight bodies could play a supportive role in reform efforts, inasmuch as the extensive use of benchmark rates affects the general public. however, since reference interest rates are primarily there to cover the needs of the financial markets, market participants are themselves ultimately under obligation. bis central bankers ’ speeches

thomas jordan : no end to the debt society without a culture of stability summary of a speech by mr thomas jordan, vice - chairman of the governing board of the swiss national bank, held at an “ nzz podium ” event, zurich, 28 february 2012. * * * the complete speech can be found in german on the swiss national bank ’ s website. the most recent financial and economic crisis has resulted in an unprecedented rise in public debt. however, a chronic tendency towards deficits and higher indebtedness has already been observed in a number of countries for the past few decades. excessive public debt has a negative impact on long - term economic growth, and deprives a country of its freedom of action during a crisis. sound state finances are thus essential for ensuring an economy's competitiveness and maintaining its social security system, and hence also for social solidarity. last but not least, excessive public debt also poses a serious threat to price stability and monetary policy independence. yet how can state budgets be consolidated over the long term? there are limitations on how far fiscal policy powers can be delegated to independent groups of experts. because fundamental decisions on taxation or expenditure – unlike monetary policy – are aimed at redistribution, they have to be taken at the political level. even fiscal rules such as a deficit cap or debt ceiling can only achieve a lasting improvement of budgetary discipline if they are supported by a broad political consensus on the advantages of sound finances. switzerland is a good example of this : thanks to the inclusion of the major political players in government responsibilities, and to the extension of direct democracy processes even to financial matters, a deeply rooted culture of stability has developed. it is this which provides the foundation for the stabilising effect of the well designed and constitutionally anchored debt brake. this has made a decisive contribution to ensuring that federal government finances are in good shape despite the financial and economic crisis. as a general rule, any efforts to establish a sustainable fiscal policy in countries with debt problems can ultimately only bear fruit if they succeed in fostering a broad - based culture of stability. bis central bankers ’ speeches