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Central mortgage bond institutions

There are currently two mortgage bond institutions authorised to issue Swiss mortgage bonds: the Central Mortgage Bond Institution of the Swiss Cantonal Banks and the Mortgage Bond Bank of the Swiss Mortgage Institutions. The Banks division is responsible for the ongoing supervision of the two mortgage bond institutions. Under the dual supervisory system, this is largely conducted on the basis of audits carried out by external audit firms and their reporting.

Mortgage bonds are bond-like securities used for the long-term financing of first mortgage loans granted by banks. In contrast to conventional bonds, mortgage bonds offer a particularly extensive, legally prescribed level of security. On the one hand, the mortgage bond issuer and the banks receiving the loans are liable to the extent of their equity, and on the other hand, the banks' mortgage borrowers are liable with the property they have pledged as collateral. The proceeds from the mortgage bond issues of both institutions are passed on to the member banks involved to refinance their mortgage business.