Breaking:

Overcoming the economic downturn: BDI boss complains about “differences” in a conversation with Scholz

A portion of the A13 motorway blocked in both directions between Paris and Normandy until Monday

Société Générale: is the account good?

what you can deduct from your 2024 tax

Huawei Pura 70: new over-equipped photophones for the Chinese market

Bank der Post remains state-owned – This is how Berne reacts to the failed Postfinance privatization – News

27 September 2022

contents

After the Council of States, the National Council also rejected the Federal Council’s proposal. In addition, there is disagreement between the parties on the issue of basic services.

The Swiss Social Democratic Party (SP) would also like to allow Postfinance to carry out mortgage and credit transactions. Group spokesman Jon Pult makes it clear that privatization is out of the question.

Legend:

A privatization of Postfinance is fundamentally wrong, says Jon Pult (SP).

Keystone / Peter Klaunzer (archive)

He says: “Overall, it is a cash cow of the postal group and also a basis for us being able to maintain the public service, today’s post office network.”

The middle parliamentary group also did not accept the Bundesrat’s proposals. It must now be proceeded step by step, says parliamentary group leader Philipp Bregy. For that you need a basis first.

Disagreement on the public service issue

Bregy (centre) says: “First of all, we have to define basic services. We have to say what the public service is and then at the same time say how we want to finance it.”

Philipp Matthias Bregy, center-VS, speaks during the debate on the code of civil procedure, during the special session.

The FDP National Councilor Kurt Fluri sees it similarly. At the same time, however, he makes it clear that the privatization of Postfinance is not off the table for the Liberals, thereby distancing himself from the Council Left.

Kurt Fluri, FDP-SO, speaks to the Grand Chamber at the summer session of the Federal Council

Fluri (FDP) says: “We consider the attitude of the Greens and the SP to be absolutely dogmatic and ideological. We don’t find it appropriate and differentiated to reject the privatization of the post office now, apparently forever.”

The Federal Council hoped for a clearer signal

But despite all the differences, the National Council unanimously decided – with a few abstentions – not to act on the bill. Federal Councilor Simonetta Sommaruga reacted a little annoyed.

Federal Councilor Simonetta Sommaruga speaks in the National Council at the autumn session of the federal councils.

She says: “It’s going in a variety of directions and no one can claim that he or she has the main reason for it now, because they just gave a wide variety of reasons.”

However, the Federal Council intends to present a report on the Post by next summer. Then the debate can continue. For the time being, however, there is no privatization of Postfinance.

SRF News: What does Parliament’s no to partial privatization mean for Postfinance?
Jan Baumann: The decision makes it difficult for Postfinance to earn money. However, it is not unexpected. Postfinance knew what to expect. But the decision also means that the Swiss Post banking subsidiary still has a limping business model. On the one hand, it accepts billions of francs in money from customers. On the other hand, it cannot lend these billions profitably in the form of mortgages and loans, as banks do. Normal banks have made good money with loans for years. Postfinance, on the other hand, will remain denied this source of income for the time being.

So does everything stay with the status quo?
No, that is not possible in practice. As a company, Postfinance has to adapt to the constantly changing conditions. Also completely detached from political decisions in federal Berne. For example, it has recently deliberately expanded its business as an investment bank. This means that it is increasingly offering wealth management services. You can also charge additional fees for this. And this wealth management is taking place more and more online. In general, the banking business is changing significantly as a result of digitization. Here, too, Postfinance is moving with the entire industry. For this reason alone, the status quo is not an option for Postfinance.

Interest rates rise. How does that relieve the pressure?
Yes, that is a very important point. The turnaround in interest rates that the central banks have heralded is having a positive long-term effect on Postfinance. To put it simply, Postfinance’s traditional business model works better when interest rates are higher than it has been in recent years with these permanently low interest rates. Specifically: There is now gradually more interest income, for example on government bonds and bonds that Postfinance buys. And seen in this way, one can say that the turnaround in interest rates comforts Postfinance at least to a certain extent for the fact that its hands are tied when it comes to independent lending.