Since publication of the last Financial Stability Report in June 2025, economic and financial conditions relevant for the Swiss financial sector have remained challenging, in particular because of the conflict in the Middle East, trade tensions, and the associated geopolitical and macroeconomic uncertainty. Thanks to substantial capital buffers, the Swiss banking sector is well placed to face this challenging environment. Overall, global economic growth was solid going into 2026, but has slowed somewhat since the escalation in the Middle East. Long‑term interest rates have increased against the backdrop of ... (full story)