Deviations between interest rates paid in the Swiss franc unsecured money market and the respective Libor rate are analysed for a period spanning the financial crisis. First, banks that have access to sources of secured central bank and interbank funding pay less than other banks. Second,...

With the reinterpretation of repurchase agreements (repos) by the tax authority and the revision of the national bank law in 1997, allowing the Swiss national bank (SNB) to use repos as monetary policy instrument, the prerequisites for the development of a Swiss franc repo market were given. The...