Swiss say Nein to Vollgeld - Rabobank

"The Swiss rejected a proposal to introduce Vollgeld policies by an overwhelming 75% in yesterday’s referendum," note Rabobank analysts.

Key quotes

"The idea underlying Vollgeld is that of full-reserve banking, a proposal that has been around since the 1930’s."

"Today’s context makes full-reserve banking unwarranted and self-defeating, as its side-effects would most likely lead to instability and a deflationary tendency."

"In the Swiss case, uncertainty would have prevailed in the short-term, followed by an increasingly conservative SNB and a further appreciating Swiss Franc, hurting the Swiss
economy."