Swiss National Bank Faces Scrutiny as New Chairman Takes Charge

Martin Schlegel, the new chairman of the Swiss National Bank (SNB), assumes his role amid scrutiny over the central bank’s handling of the Credit Suisse collapse and its acquisition by UBS. Critics argue that Swiss authorities were ill-prepared for the crisis, prompting a parliamentary investigation. Schlegel's critical task will be to navigate regulatory changes and maintain SNB’s monetary policy success.

Martin Schlegel, the new chairman of the Swiss National Bank (SNB), is stepping into his role this week amidst considerable scrutiny over the central bank's handling of the Credit Suisse crisis and its subsequent takeover by UBS.

Schlegel, previously SNB vice-chairman, takes over amid a looming parliamentary investigation into the Swiss authorities' management of the 2023 Credit Suisse collapse. Critics, including former Bank of England Deputy Governor Paul Tucker, have described the authorities as "woefully unprepared."

A critical challenge for Schlegel will be shaping new regulations, such as tougher capital rules for the enlarged UBS, while maintaining the SNB's strong track record on monetary policy. Analysts expect continuity with his predecessor Thomas Jordan, particularly in focusing on price stability.

(With inputs from agencies.)