The deadline for compliance is 30 June 2014. As part of its proposal, the SNB drew attention not only to the cyclical risks but also, once again, to the high risks in mortgage lending, especially in the area of affordability. Some three months have passed since the CCB was increased. Based on the data currently available for the first quarter of 2014, the all-clear still cannot be given, in our view. In the first quarter of 2014, momentum in real estate prices was similar to that in the previous year and therefore has not further diminished. However, for an idea of the overall picture we are still lacking important data. A definitive assessment of the latest developments would therefore be premature. So we will continue to monitor developments on the mortgage and real estate markets closely. Any decisions on further measures must be made in the light of these observations. The SNB therefore regularly examines, first, whether the CCB needs to be adjusted. Depending on how the situation develops, this might need to be an upward or a downward adjustment. Second, the authorities are working on the specification of measures that would target risks in the area of affordability. Monetary policy and the SNB balance sheet: Flexibility as the key factor In the case of the CCB, the SNB plays an important role because it can make proposals for its activation, alteration or deactivation. However, this instrument does not have any impact on our balance sheet.
The second example I would like to mention here is the introduction of the minimum exchange rate in September 2011. This rate was introduced to correct a massive overvaluation of the Swiss franc arising from adverse developments on the foreign exchange market, and thereby avert the threat of a deflationary trend. I have explained to you why this instrument is still needed and is being enforced by us without any restriction. A measure like the minimum exchange rate can only succeed if the central bank is totally credible, in other words, if people believe it will actually defend the rate, if need be. Words can certainly achieve a great deal in the financial markets. But this only holds true if they are followed up with deeds when necessary. In the case of the minimum exchange rate, the deeds in question are unlimited foreign currency market interventions. In 2012, we were required to enforce the minimum exchange rate with extensive foreign currency purchases, and our balance sheet total increased significantly. If there were statutory restrictions on our balance sheet we would be unable to introduce and enforce a measure of this kind. The financial markets would call into question both our resolve and our ability to see the measure through. Concluding remarks Ladies and gentlemen, I come to my concluding remarks. Even seven years after the onset of the financial crisis, the environment remains very challenging for our economy and for Swiss monetary policy.