SNB's Jordan on Inflation, Rates, Banks' Resilience

The transcript discusses global inflation, noting its recent increase but viewing it as temporary. It highlights Switzerland's low inflation and the need for continued expansionary monetary policy due to the high value of the Swiss franc. The conversation shifts to financial stability, emphasizing the strong capitalization of UBS and Credit Suisse, while acknowledging risks in certain business areas. The discussion concludes with concerns about liquidity in the event of a crisis, prompting a working group to assess regulatory adjustments.

What is the general outlook on global inflation according to the speaker?

• It is expected to rise significantly in the long term.

• It will remain constant over the next decade.

• It is expected to decrease rapidly.

• It is seen as a temporary phenomenon.

Why is Switzerland's inflation considered low?

• Because of negative inflation rates in the past.

• Due to high unemployment rates.

• Due to a strong economic growth.

• Because of high interest rates.

What is the current stance of Swiss monetary policy?

• To maintain an expansionary policy.

• To increase interest rates significantly.

• To reduce foreign exchange interventions.

• To focus on reducing inflation.

What is a key factor in ensuring the stability of globally active banks?

• High levels of capital and effective risk management.

• Focusing solely on commercial banking.

• Reducing the number of business areas.

• Increasing the number of branches worldwide.

What recent report did the Swiss government release regarding major banks?

• A report on increasing interest rates.

• A report on the lack of liquidity in a crisis.

• A report on reducing inflation.

• A report on increasing foreign investments.

What is the purpose of the working group mentioned in the final section?

• To increase the number of banks in Switzerland.

• To promote international banking partnerships.

• To assess and improve liquidity regulations.

• To reduce the capital requirements for banks.

What is the significance of the 'too big to fail' regulation?

• It ensures banks can operate without any regulations.

• It prevents banks from engaging in international trade.

• It provides a framework for resolving bank failures.

• It mandates banks to increase their interest rates.