bank lending will play a crucial role in switzerland ’ s economic development, especially in the coming weeks and months. the new crf is intended to support banks in these efforts, as is the raising of the exemption threshold for the negative interest rate announced by the snb last week. furthermore, after consulting with finma, the snb has submitted a proposal to the federal council requesting that the countercyclical capital buffer for mortgage loans on residential real estate be deactivated. this integrated package of measures gives banks maximum latitude for lending. since imbalances persist on the swiss mortgage and real estate markets, it is important that banks take adequate account of risks when granting mortgages. we are confident that the banks are aware of these risks. we are also confident that they will not use the latitude afforded by this access to capital to pay dividends or buy back shares, but rather to fulfil their economic function. in addition to facilitating lending, the snb is helping to stabilise the economic situation through its expansionary monetary policy. to ensure appropriate monetary conditions, we must counteract increased upward pressure on the swiss franc. we have therefore decided to scale up our foreign exchange market inventions – a tried - and - tested instrument – to shield the swiss economy. ladies and gentlemen, within the scope of its mandate, the snb is doing everything it can, in cooperation with the federal council and the authorities, to mitigate the economic impact of the coronavirus crisis on the population and on companies. page 2 / 2

philipp hildebrand : setting the course for the swiss economy – challenges for the swiss financial centre and outlook for the future summary of a speech by mr philipp hildebrand, chairman of the governing board of the swiss national bank, to the zurcher volkswirtschaftliche gesellschaft, zurich, 17 may 2010. the complete speech can be found in german on the swiss national bank ’ s website ( www. snb. ch ). * * * the swiss banks face two major challenges. first, sooner or later, they will have to carry out their core business – asset management for foreign customers – in a tax - conform environment. second, the big banks will be required to operate under more stringent regulatory requirements. these challenges are likely to lead to structural changes in the financial centre. how are such changes likely to affect the swiss economy? an empirical analysis shows that, although the financial centre plays an important role in the swiss economy, it also entails considerable risks. in the case of cross - border asset management, the relationship between the risk to the economy and the income earned is acceptable. however, this is hardly the case for the banks ’ own trading activities. consequently, current regulatory efforts could not only improve the stability of the financial sector, but also increase both the profitability of banks and the benefit which the swiss economy derives from the financial sector over the long - term period. meanwhile, it is of key importance, not just for the financial centre but for switzerland as a whole, that an acceptable solution be found for the taxation of foreign bank deposits.