The Swiss National Bank (SNB) reported total sight deposits of CHF 444.1 billion as of 7 March, compared to CHF 437.4 billion previously.
As of 10 March 2025, domestic sight deposits increased to CHF 435.9 billion from CHF 429.4 billion.
Recent Trends In Sight Deposits
Despite the slight rise in Swiss sight deposits over the past week, this change is considered ordinary within recent trends. The overall movement in sight deposits continues to indicate a downward trajectory.
This data suggests that, while there has been a slight uptick in deposits, the broader direction remains downward. Such a trend reflects ongoing liquidity adjustments within the banking system rather than any abrupt shifts in market sentiment.
Given this, attention should be paid to the actions of the Swiss National Bank in the coming weeks. If deposit outflows persist, the central bank may reconsider its current stance on liquidity management. Changes in sight deposits often provide insight into shifts in monetary conditions, as they reflect how financial institutions interact with the central bank’s balance sheet.
Jordan and his colleagues have given no indication of imminent intervention, but past precedent suggests that sustained declines in deposits could lead to adjustments in policy. The SNB’s previous responses to changes in banking reserves have often been tied to broader monetary and economic conditions. While there is no immediate cause for concern, rapid shifts in sight deposits could prompt renewed discussions over liquidity strategy.
Potential Policy Implications
In this context, it would be reasonable to expect continued monitoring of deposit behaviour, particularly regarding how domestic institutions position themselves. The fact that domestic sight deposits remain higher than earlier in the year suggests that, at least for now, domestic financial structures are maintaining stability. However, if the downward movement persists, implications for monetary policy settings could emerge.
Further adjustments by the SNB would likely depend on external pressures, including foreign exchange dynamics and broader economic indicators. If liquidity constraints intensify, this could have ripple effects beyond Swiss borders, adding complexity to decisions around interest rate policy.
For now, the figures alone do not indicate an immediate need for alarm, but vigilance remains warranted. Changes in deposit levels could alter expectations of central bank behaviour, which may, in turn, shift pricing dynamics across multiple asset classes.
