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The BNS's New Extended Liquidity Facility (FEL): a Break with Walter Bagehot's Principles?

Summary by Le Temps
CHRONIQUE. This new tool of the National Bank allows a bank in difficulty to obtain sufficient liquidity in exchange for collateral, and without the State guarantee being engaged. In breach of Walter Bagehot's principlesAt the end of April, the Swiss National Bank (SNB) announced the creation of an extended liquidity facility (FEL, in English ELF for Extended Liquidity Facility). Designed to strengthen financial stability, this facility comes tw…
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CHRONIQUE. This new tool of the National Bank allows a bank in difficulty to obtain sufficient liquidity in exchange for collateral, and without the State guarantee being engaged. In breach of Walter Bagehot's principlesAt the end of April, the Swiss National Bank (SNB) announced the creation of an extended liquidity facility (FEL, in English ELF for Extended Liquidity Facility). Designed to strengthen financial stability, this facility comes tw…

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Le Temps broke the news in on Sunday, June 1, 2025.
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