Federal Council informed about annual report and comments on real estate market of advisory board for future of Swiss financial centre

Bern, 16.01.2019 - During its meeting on 16 January 2019, the Federal Council was informed about the annual report of the advisory board for the future of the Swiss financial centre. The main focus in 2018 was on strengthening the capital market and the situation on the Swiss real estate market.

In its 2018 annual report, the advisory board for the future of the Swiss financial centre stated that the Swiss capital market had developed only inadequately in recent years and that withholding tax reform should be tackled as a matter of urgency. The advisory board had adopted a corresponding recommendation for the attention of the Federal Council.

In addition, the advisory board analysed the situation on the Swiss real estate market in a separate statement. Mortgage debt in Switzerland is high and growing faster than the economy as a whole due to the prolonged period of low interest rates and tax incentives for the taxation of residential property. The advisory board believes that the change in the residential property taxation system, as formulated in its recommendation of March 2016, should be implemented as quickly as possible.

Now that substantial risks to financial stability have built up in the residential real estate sector, the advisory board recommends that further containment measures be considered to curb the build-up of these risks. Aside from risk-based, institution-specific measures within the scope of supervisory activity, it also believes that self-regulation measures in the sector would be effective.

In addition, the advisory board dealt with other forward-looking topics. It noted, for example, that the Swiss financial centre is fundamentally well positioned in the area of sustainable finance. Primarily, the financial sector itself is called upon to exploit potential in this area. The Confederation only intervenes secondarily, for example in the development of an internationally recognised taxonomy. Other topics discussed include the positioning of Switzerland as a location with the greatest possible data security and the question of the desirability of electronic central bank money.

On 5 December 2014, the Federal Council decided to appoint an advisory board charged with assessing the future challenges and prospects for the financial centre from a strategic viewpoint and submitting recommendations for action to it if need be. Led by Professor Aymo Brunetti, the advisory board is comprised of representatives from the authorities and the private sector, as well as academia.

Address for enquiries

Roland Meier, Media Spokesperson FDF
Tel. +41 58 462 60 86, roland.meier@gs-efd.admin.ch