The Swiss National Bank (SNB) stands at a critical juncture as Thomas Jordan, its longstanding president, prepares to step down. This transition presents an opportunity for the Swiss government to contemplate reforms within the traditionally conservative institution.
Despite criticisms of the SNB’s independence resembling impunity at times, there’s little inclination among Bern lawmakers to advocate for change. Thomas Aeschi, a senior lawmaker, asserts that his colleagues trust the current management and are reluctant to interfere, emphasizing the institution’s achievements in maintaining price stability and the strength of the Swiss franc.
However, concerns persist regarding the SNB’s accountability and transparency. Criticisms range from its handling of negative interest rates to its alleged discrimination against female staff. While the bank denies these allegations, questions linger over its commitment to gender equality and modern workforce practices.
The departure of former policymaker Andrea Maechler, the only woman to have served as a Swiss rate setter, further underscored these concerns. The SNB’s response emphasizes its governance effectiveness and ability to fulfill its mandate despite external disruptions.
The SNB’s adherence to tradition is evident in its governance structure and policy approach. Unlike its global counterparts, dissenting views among interest-rate setters are not publicly voiced, raising concerns about internal debate. Any decision to expand the number of rate setters would require legislative approval.
Despite criticisms, the SNB has achieved success in maintaining price stability and managing economic challenges. However, questions remain about its handling of crises such as the failure of Credit Suisse. Calls for reforms, including greater gender diversity and periodic reviews of its activities, highlight the need for modernization within the institution.
The selection of Jordan’s successor will be crucial in determining the SNB’s future direction. While continuity seems likely, the appointment presents an opportunity for change, with gender diversity and institutional reform on the agenda. However, the prevailing cautious approach in Switzerland suggests that significant reforms may be slow to materialize.
