Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 36

complexity, also in regulation, deters
transparency, expectable behavior
and confidence

conditions S s are
less worried about access to credit and that can help unleashing
growth. Of
course, we
are
in a
strange
environment says Peter Praet, but without this the
recession would
have
been
much
deeper. e
reminds that the
mission of the
CB is price
stability and that does not entail
influencing
redistribution processes over governments' action.
Of
would
have
ollowing the case of wit er and is interesting since they depend
massively
on
their trading
partners. Thomas Jordan, chairman
of the overning Board
of the Swiss National Bank confirms the
' action.
outline of the global environment
mentioned
by Peter Praet. Core inflation, that excludes oil and

since they depend
massively on
their trading
is already in is
fullinteresting
employment

Swiss DP
is expected to grow at a
1.
rate in
201 . But production
capacity utilization, as in urope,
shows some leeway still. The SNB
had
to
still
continue
its
intervention on the
foreign
currency markets, purchasing
currencies for C
The SNB

LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE

N°98

- JULY /

AUG / SEP 2017

At the same time, the Basel Committee plans a review of the
weighting of the sovereign bond markets. Sovereign bonds
are not necessarily synonym of "risk-free" assets anymore.
This could have a strong influence on this asset class, and will
certainly generate a lot of debate still and cross impacts on
other matters where the "risk-freeness" of government bonds
a pillar, depending
on the granularity they would want to

billion in 201 totaling
almost C is
800
billion
.
reach for the new rules. We are in a complex world/system.
Prudential
regulation evolves and has an impact on the asset
react to
smooth
out the valuation
of the Swiss franc but in the
meantime, they need to
make
sure
classes held by banks, central banks use freely monetary
oreign
policy adapting the liquidity on the system, and accounting
.
rules also evolve...
Therefore, they have primarily invested in government bonds,
shouldn't impact prices and thus the
SNB cares a
lot about absorption capacity, liquidity thus,
then added
corporate
bonds and nowthey
equity,
the
later
corresiss
franc
but
in
the
meantime,
need
to
make
sure
security and
return. Therefore, they have primarily invested in government bonds, then
added
Repo markets play a key role in the regulation of the flow
ponding to 20% of the portfolio. Of course, return is key since
corporate
bonds and now equity, the later corresponding to
20 of the portfolio. Of course, return
is
between cash and securities in the market. They are still in a
any investment in local currencies will worsen, would the
key
since any
investment
in appreciate.
local currencies
worsen,
theofSwiss
franc appreciate.
state of They
transition and, depending on the jurisdiction, banks
Swiss franc
Theywill
don't
investwould
in stock
financial
don't invest in
stock
of
financial
institutions.
are less willing to enter repo intermediation than before the
institutions.
Therefore, they have primarily invested in government bonds, then
added
crisis. Some central banks have tried to reduce the scarcity
ow equity, the later corresponding to
20 of the portfolio. Of course, return
is
of certain repo collateral and this has clearly helped in those
will worsen, would
the Swiss franc appreciate. They
cases.
On the FinTech side, apart from payments and cash management, we start witnessing a movement towards Apps for
smart devices that provide quantitative finance valuations
and feeds. Of course, ergonomics and user experience are key
on smartphones thus we wouldn't expect lengthy processes
to be run on a smartphone, but why not, to be remotely run,
monitored and results being examined on the device instead.
The post-trading and "payments" industry is still evolving,
with a potential consolidation or integration of more functions
among providers, or integration of providers. There are movements in the Trade Registrars, in the area of blockchain, and
more shortly, the PSD2 initiative and open banking through
APIs, that will continue to animate many strategic discussions
until its introduction in January 2018. With PSD2, competition
will increase, it is a fact, and banks will have to rethink even
more quickly how they are going to service a client who now
might have its accounts in one place and plenty of third-party
service providers doing the rest.

36
the same time, the Basel Committee
plans a
review of the weighting of the sovereign bond

Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017

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