to the new basel iii liquidity coverage ratio requirements, which require credit institutions to hold a minimum level of high - quality liquid assets so that they can cover an exceptional short - term liquidity requirement themselves. these new baskets therefore meet bis central bankers ’ speeches a significant market need. in this way, the snb is helping to ensure that the repo market remains liquid, also under the new liquidity requirements. reform efforts in the area of benchmark interest rates i would like to close by talking about progress that has been made in reforming benchmark interest rates. the international efforts to improve the credibility and acceptance of benchmark interest rates are being coordinated by the financial stability board, whose final report on this matter will be published this summer. as part of this work, a group of private sector financial market participants has drawn up alternatives to the libor. data are currently being collected so that the proposals can be evaluated. surveys are being carried out in all currency areas affected, including the swiss franc area, and the first results will also be available this summer. both the final report and the survey results are important steps towards reforming benchmark interest rates. however, the organisation that will administer the libor interest rates has already been established. it is ice benchmark administration limited ( iba ), a london - based subsidiary of the us exchange operator, intercontinental exchange ( ice ). along with the bank of england and the federal reserve, the snb is represented as an observer in the iba oversight committee. matters discussed by the oversight committee include methodology, definition and data basis for the libor rates ; as such it plays an important role in supporting and evaluating the reforms that have been adopted. bis central bankers ’ speeches charts bis central bankers ’ speeches bis central bankers ’ speeches

news conference 15 december 2022, 10. 00 am introductory remarks by andrea m. maechler in my remarks, i will talk in more detail about the implementation of today ’ s monetary policy decision, which thomas jordan has already touched on. i will start, however, by giving you an overview of how we have steered interest rates since the switch to a positive snb policy rate in september. the switch from a negative to a positive snb policy rate required us to make an adjustment to the implementation of our monetary policy in the money market. the new approach comprises two elements : reserve tiering – that is, tiered remuneration of the sight deposits that banks and other financial market participants hold at the snb – and reserve absorption. this approach has proved successful. following our monetary policy decision on 22 september, secured short - term swiss franc money market rates moved quickly towards the new snb policy rate ( cf. chart 1 ). we are also continuing to see solid activity among participants in the money market, which ensures a robust basis for the calculation of saron. from the outset, the market responded favourably to the deployment of our monetary policy instruments to absorb liquidity. on the very day of the monetary policy assessment in september, we started conducting repo transactions on a daily basis and issuing snb bills on a weekly basis ( cf. chart 2 ). in this way, we were able to reduce the liquidity supply in the money market sufficiently to allow us to steer interest rates effectively. with today ’ s interest rate increase, we are also raising the interest rate on sight deposits above the threshold. for domestic banks, this threshold is calculated on the basis of their minimum reserve requirements. 1 by remunerating sight deposits above the threshold now at 0. 5 %, we ensure that our tighter monetary policy will continue to be passed through efficiently to interest rates in the money market overall. further information is available in the instruction sheet governing interest on sight deposits. page 1 / 2 berne, 15 december 2022 andrea m. maechler news conference page 2 / 2