Mar, Abr 2nd 2024
Critics highlight SNB’s deviation from global norms in leadership appointments.
The Swiss National Bank (SNB) stands out for its distinctive approach to leadership appointments, diverging from the customary practices by consistently promoting internal candidates.
This trend has not gone unnoticed, sparking a dialogue among economists about its implications for the central bank’s governance and societal alignment.
A recent report by the SNB Observatory, a collective of esteemed economists including Stefan Gerlach and Charles Wyplosz, casts a spotlight on this unconventional pattern.
The report underscores a departure from what they describe as international norms, where central bank management often sees fresh external perspectives through appointments from outside the institution.
The focus of the economists’ critique is the prevalent internal promotions within the SNB, notably, two thirds of Governing Board members ascended from within the bank’s own ranks, marking a significant shift from previous practices.
This, they argue, leads to a leadership echo chamber, potentially skewing the bank’s policies and priorities away from the broader societal expectations, such as views on profit distribution.
Central banks in key euro-zone nations, including Germany, Italy, Austria, and the overarching European Central Bank, have historically opted for leaders with external tenures prior to their central bank roles claims an article originally published by bloomberg.
The recent inclusion of Antoine Martin, formerly of the Federal Reserve , into the SNB’s board, following extensive deliberation and public debate on the bank’s internal dynamics, suggests a potential acknowledgment of these concerns.
Whether this signals a shift towards greater openness and external influence in the SNB’s future appointments remains a topic of keen interest and speculation among financial observers.
What does this say about Swiss values? Things are going to plan; is there any reason to follow soft international etiquette if the system works? Or are we seeing the rise of an unsustainable patterns forming in the organisation.
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