Raiffeisen launches Saron products
Raiffeisen is introducing a Saron mortgage and a Saron loan for corporate customers. This makes it the first national retail bank to offer products under the new interest rate, Raiffeisen said.
With the imminent replacement of the CHF Libor interest rate by the SARON (Swiss Average Rate Overnight), Raiffeisen is launching two new Saron products based on Swiss francs. For money market mortgages that are newly concluded or extended, the bank will in future only offer Saron Flex mortgages instead of the previous Libor mortgages. According to Raiffeisen, the Saron interest rate is more stable in the event of market turbulence, is generally less volatile, does not involve large interest rate jumps after interest rate periods and customers generally benefit from the lowest market interest rate. For corporate clients, Libor loans - with maturities until the end of 2021 - remain available, but Saron loans are now also available.
As the operator of the infrastructure of the Swiss financial center, SIX calculates and publishes the Saron interest rate every ten minutes on the basis of secured lending between Swiss financial institutions and insurance companies. According to its own information, Raiffeisen uses the interest rate of 18:00 each day for its products. In addition to Raiffeisen, UBS and Glarner Kantonalbank also have the first Saron products in their portfolios. (ah)
