About us

As a joint venture of the 24 cantonal banks, the Pfandbriefzentrale does not focus on making a profit. Rather, it is concerned with fulfilling its legal purpose in accordance with Art. 1 para. 1 (Pfandbrief Act (PfG)) and providing land owners with long-term loans secured by a mortgage at the most constant and favourable conditions possible. For this reason, the Pfandbriefzentrale is exempt from direct federal, cantonal and municipal taxes under Art. 6 para. 1 PfG.

The issue volume or the issue of mortgage backed loans is based on the needs of the member banks and investors. The funds from the bond loans raised on the market are passed on to the 24 cantonal banks in the form of mortgage backed loans in the same total amount, in the same currency (CHF) and with the same term against registered pledge cover. Only a small interest surcharge is levied on the mortgage backed loans to finance business activities. The principles of corporate governance ensure that the interests of the various stakeholder groups are taken into account in a balanced manner. The Pfandbriefzentrale has an appropriate organisational structure to ensure that tasks, competencies and responsibilities are clearly assigned, effective and coordinated.

In the interests of safeguarding common interests, promoting cooperation and strengthening the position of the cantonal banks in Switzerland, the Pfandbriefzentrale strives for an active exchange with the Association of Swiss Cantonal Banks (ASCB) whenever it makes sense to do so. The Mortgage Bond Centre also regularly exchanges information with the Swiss Bankers Association (SBA) and is actively involved.

The representation of interests is carried out in compliance with local laws and is based on the principles of honesty, completeness, respect, accuracy of information and transparency. Furthermore, this is generally limited to issues that directly affect the Pfandbriefzentrale or the Pfandbrief system in Switzerland.

The business activities are narrowly defined and changes to the Articles of Association and the valuation regulations must be approved by the Federal Council (Swiss government). The Federal Council also appoints an independent member to the Board of Directors.

The handling of conflicts of interest (identification, avoidance, taking measures) is governed by the organisational regulations and is reviewed annually by the Board of Directors.

The auditors for the cantonal banks and the Pfandbriefzentrale monitor compliance with legal and regulatory provisions annually and report directly to FINMA. The Swiss Federal Council approves the Articles of Association and Valuation Rules for the Pfandbrief institutions based on the provisions of the Pfandbrief Act. The Federal Council is responsible for electing a member to the Boards of Directors of the Pfandbrief institutions.