Swiss Financial System
SNB Sight Deposits
SNB Sight Deposits sits inside the operating framework through which the Swiss National Bank steers short-term Swiss-franc liquidity and money-market rates.
Definition
SNB Sight Deposits sits inside the operating framework through which the Swiss National Bank steers short-term Swiss-franc liquidity and money-market rates.
Operating mechanism
Banks and other eligible institutions hold sight deposits at the SNB for settlement, reserves and liquidity. Their remuneration is tiered, so the rate applied to balances depends on thresholds and the current operating framework.
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.