In this report, the Swiss National Bank presents its assessment of the stability of the Swiss banking sector. The SNB contributes to the stability of the financial system in accordance with the National Bank Act (art. 5 para. 2 (e)). A stable financial system is defined as a system in which the various components fulfil their functions and are able to withstand severe shocks. Moreover, the Banking Act designates certain banking sector functions as systemically important, i.e. they are considered indispensable to the Swiss economy and cannot be substituted at short notice. These are, in particular, the domestic ... (full story)