become available for profit distribution in favour of the confederation and the cantons. as from 2003, annual profit distribution will amount to sfr 2. 5 billion. the profit distribution agreement concluded with the confederation last april need not be revised. it already provides for an automatic revision of the situation in the event that the national bank's earnings should permanently exceed the expected level. inflation forecast december 2002 with libor at 0. 75 % annual average inflation in % 0. 7 0. 7 0. 9 1. 6

effective from the beginning of 2015, to disclose the basel iii leverage ratio will enable a direct comparison between large globally active banks. this is why it is essential for banks to have a solid leverage ratio. total capital comprises going - concern loss - absorbing capital ( common equity tier 1 capital plus high - trigger contingent capital instruments ) and low - trigger contingent capital instruments. the latter are primarily aimed at ensuring the maintenance of systemically important functions and the orderly resolution of the residual bank, and are therefore important in a “ gone concern ” perspective. bis central bankers ’ speeches increasing the credibility of model - based risk - weighted assets increasing the credibility of risk - weighted assets ( rwa ) based on banks ’ internal models remains an important goal. as discussed in the 2013 financial stability report, model - based rwa are being called into question by market participants, analysts and authorities worldwide. this is particularly significant as rwa are at the heart of the capital regulations for banks. it is widely accepted that a bank ’ s risks can, in principle, be more accurately quantified using the model - based approach than using the standardised approach. yet banks ’ internal models are highly complex and can vary widely between institutions, thus making it difficult to accurately assess a bank ’ s resilience and compare one bank with another. the snb welcomes the efforts by the swiss big banks to increase transparency with regard to their risks. for example, both institutions recently started to disclose changes in their rwa, broken down by cause. of particular interest is the proportion of the reduction in rwa which is attributable to model adjustments. in addition, credit suisse has been publishing a statistical measure of total loss potential for some time now, and ubs recently started to publish a statistical measure of loss potential by business division and a scenario - based post - stress capital ratio. the snb encourages the big banks to further increase transparency with regard to their risks. it continues to recommend that the big banks disclose rwa according to both the model - based approach and the model - independent standardised approach. this recommendation is in line with increasing efforts being made at international level. disclosing rwa according to the standardised approach would provide market participants with additional information for assessing the level of, and changes in, model - based rwa. in this context, the analysis of rwa being carried out by finma with the support of the snb will play an important role. the big banks have already provided