Swiss companies adapt to strong franc
December 10, 2019
Switzerland’s financial supervisor on Tuesday highlighted negative interest rates as a major risk for the country’s banking industry, saying they undermine profitability and business models. It was the first such report from Finma and it comes amid a growing debate over the need for subzero rates to protect exporters. “We’re always happy if the franc is not too strong, but the companies are used to it,” says Eugen Perger, senior analyst at Research Partners. He says many have taken steps to cope, including by diversifying production and hedging.