Swiss Financial System
SNB General Collateral Basket
SNB General Collateral Basket sits inside the operating framework through which the Swiss National Bank steers short-term Swiss-franc liquidity and money-market rates.
Definition
SNB General Collateral Basket sits inside the operating framework through which the Swiss National Bank steers short-term Swiss-franc liquidity and money-market rates.
Operating mechanism
The SNB combines remuneration of sight deposits with liquidity-providing or liquidity-absorbing operations. Depending on the instrument, reserves are created, absorbed or repriced, influencing secured overnight rates and the distribution of liquidity between counterparties.
Why markets care
The instrument affects the path from the policy rate to SARON, repo pricing, bank liquidity and ultimately broader CHF funding conditions. Its importance therefore depends on both price and quantity.
What to monitor
Follow SNB operational announcements, sight-deposit data, SARON, repo conditions and changes to remuneration, collateral or counterparty rules. The framework can change without a change in the headline policy rate.