2025-11-13 - Petra Tschudin / Thomas Moser: Bank funding costs: latest developments from a monetary policy perspective

Since the beginning of 2024, the SNB has lowered its policy rate by 1.75 percentage points. This has led to lower financial market and lending rates. Nevertheless, bank funding costs, as measured by swap spreads, have increased. The main reasons for this are the rise in foreign government bond yields relative to swap rates, the structural change following the acquisition of Credit Suisse by UBS,…