Swiss National Bank Criticized for Rejecting Activist Investment Policies: Balancing Stability and Change in the Face of Political Pressure

During the General Meeting (AGM) of the Swiss National Bank, attendees expressed their opinions on what changes the bank should make. However, Bank Council President Barbara Janom Steiner turned the tables by criticizing these suggestions of a more precise inflation target, dividend distributions despite losses, a larger board of directors, Bitcoin investments, and a climate-focused investment policy. She accused the critics of being reckless and irresponsible.

Barbara Janom Steiner, who is also a member of the three-member Board of Directors led by Thomas Jordan, emphasized that monetary policy decisions made by the SNB must be in the country’s overall interest and not sway into areas like climate or social policy as specified by the Federal Constitution. She highlighted that pushing for such changes could jeopardize stability.

At the AGM, climate activists protested for a more activist investment policy from the SNB. However, Janom Steiner rejected these demands and emphasized that success lies in focusing on stability over political or special interests. Despite criticism from some quarters, National Bank President Jordan encouraged open discourse on monetary policy responses and a willingness to question assessments. He also prepared for his upcoming retirement at the end of September by expressing his hope for a generational change in board membership that might lead to potential shifts in public engagement.

The three-member Board of Directors is responsible for determining monetary policy at SNB. Under Jordan’s leadership as president, they have successfully maintained price stability while considering economic factors. They emphasize their independence in making such decisions.

Janom Steiner countered critics by emphasizing that any proposed changes could put SNB stability at risk. She urged caution in making decisions related to inflation targets, dividend distributions despite losses, board size expansions, Bitcoin investments and climate-focused investment policies.

As Jordan prepares to resign at the end of September there will be a generational change in board membership leading to potential shifts in approach towards public engagement with SNB’s stakeholders.