In CHF bn.
Status as of 31 December 2022
Strict legal and regulatory provisions apply to the member banks' mortgage loans that serve as collateral. Lending is limited to a maximum of two-thirds of the properties' loan value. All properties against which a mortgage is to be raised are located in Switzerland. The cantonal banks must pledge mortgaged properties with a value of 115% of the loan amount as collateral for their loans. The interest income from the mortgages set aside for the mortgage-covered loans must be at least 10% higher than the interest payable on the mortgage-covered loans. The legal obligation to comply with these criteria at all times means that it is possible to substitute inadequate collateral as required. The Board of Directors of Pfandbriefzentrale has limited loan subscriptions for member banks to 35% of their reported domestic mortgage loans.