These three most important elements are dependent on developments abroad, international financial markets, and global demand for commodities. The Swiss franc exchange rate, by comparison, does not play a decisive role. There is thus no contradiction between having a strong Swiss franc and a large current account surplus. Nor is the surplus a suitable measure for assessing Switzerland's share in global imbalances. It is much more the case that Switzerland and its extensive level of direct investment abroad contributes significantly to balanced global economic growth. SNB monetary policy is focused on ensuring price stability. In so doing, it takes due account of economic developments. To fulfil this mandate, the SNB must secure appropriate monetary conditions. The current account surplus does not play a role in monetary policy. In an open economy like Switzerland, however, sizeable exchange rate fluctuations have a strong impact on production and prices. In the current environment, and with interest rates close to zero, the minimum exchange rate is therefore the correct monetary policy instrument. The SNB will continue to enforce it with the utmost determination. BIS central bankers’ speeches  1
As a result, the intermediation was taken up instead by financial systems in the advanced economies which, as we know, led to risktaking and a major asset price bubble. In closing, I want to end my remark by making a few observations on the direction of global finance going forward. As a matter of fact, the current crisis is also a crisis of globalized finance, considering the damage that has been done to the global banks and financial markets. Lessons learnt from this crisis will definitely bring about important changes in the global financial landscape, as well as in the regulatory approach to bank regulation and supervision. On this, key trends we can expect to see in the emerging financial landscape will include, on the demand side, consumers becoming more risk averse and having preference for local institutions and for simplicity of transactions and instruments, while demanding greater accountability and transparency. On the banking side, business models of banks will become more conservative, relying less on wholesale funding and on the use of leverage, while giving greater importance to risk management and higher liquidity buffer. And on the regulatory front, more emphasis will definitely be on public surveillance and the use of macroprudential oversight, with focus on system-wide stability, closer supervision of the systemically important financial institutions including non-banks, and establishing an international procedure for an orderly unwinding of a troubled systemically important global player.