the united kingdom, spain and ireland. in this case, lax lending standards prior to the crisis proved to be a key factor. but how can this potentially damaging link between the mortgage and real estate markets, the banking system and financial stability be explained? first, it is important to remember that these markets represent a major concentration of risks, especially for banks and households. thus, mortgage claims in switzerland are the biggest asset item on banks ’ balance sheets. they account for roughly 30 % of total assets in the banking system – and if one considers only the domestically focused banks that operate predominantly in the swiss credit market, this percentage rises to 70 %. moreover, residential property is the most important asset overall of households in switzerland, and mortgage loans are their largest liability. around 45 % of household wealth is invested in real estate, and mortgage loans account for a full 95 % of household debt. 5 these figures highlight a further important aspect : the real estate market is largely debt financed. roughly 95 % of mortgage loans are granted by banks. there are thus close links between the mortgage and real estate markets and the banking sector. a final important fact is that real estate markets have historically been subject to prolonged and pronounced cycles. such cycles can last for years or even decades. during the long upswing phases, risks tend to be underestimated, thereby leading to excessive risk - taking by households, companies, investors and banks. a downswing, by contrast, can generate the mutually reinforcing effects of falling prices and loan defaults. this can lead to severe upheavals in the banking system and entail high economic costs. how we fulfil our tasks ladies and gentlemen, in light of the high loss potential of mortgage and real estate market crises, the question is : how can systemic risks originating in these markets be contained? from a macroprudential perspective, three elements stand out : identifying the risks at an early stage, containing their growth, and strengthening banks ’ resilience. i would like to explain these three elements in greater detail. let me begin with the snb ’ s risk monitoring, before speaking about the macroprudential instruments we have at our disposal. cf. the snb focus article household wealth in switzerland : concepts and trends in an international comparison, available online on the snb ’ s data portal : data. snb. ch / en / topics / texts #! / doc / focus _ 20210429 ( consulted on 30 august 2021 )

thomas jordan : innovation and entrepreneurship - key success factors in a changing business environment summary of a speech by mr thomas jordan, chairman of the governing board of the swiss national bank, at the award ceremony 2018, de vigier foundation, solothurn, 30 may 2018. * * * the complete speech can be found in german on the swiss national bank ’ s website ( www. snb. ch ). for many decades, switzerland has been among the world ’ s most successful economies. if it is to maintain this position in future, openness to new technology will be essential. in addition to taking over technologies created elsewhere, switzerland will need to ensure that domestic companies are able to develop their own market - ready innovations. various factors can facilitate success on this front, whether in established companies or startups. above - average operating conditions – including low bureaucratic hurdles for the set - up and day - to - day running of companies, reliable patent law and ready access to financing, for example – are crucial. another important parameter is open market access, not least for foreign competitors ; barriers to entry for new firms are extremely harmful to economic wellbeing. the education system is also a significant determinant of a country ’ s innovative potential. switzerland invests heavily in high - quality education, both at university level and in the form of specialist vocational training schemes, which helps explain its status as a global leader in research and development. and finally, it is vital to promote a culture of entrepreneurship. the will to pursue a given business activity and succeed is critical if promising ideas are ultimately to evolve into marketable products or processes. switzerland cannot be truly ambitious without ambitious entrepreneurs, and surveys suggest that the country still has room for improvement here. against this backdrop, steps should be taken to cultivate innovative drive and entrepreneurial thinking early on, for instance by encouraging high school students to do projects in which they found their own small companies. various universities already run programmes designed to assist young researchers in bringing innovative products and services to market. private initiatives also play a significant role in nurturing entrepreneurship in switzerland, helping young people learn how to transform an idea into an innovation and operate a business. 1 / 1 bis central bankers'speeches