The SNB cuts its minimum provision allocation to 8% from 10%, releasing profit to the Confederation and cantons sooner.

Two central banks moved capital into the real economy this week by different routes. The SNB's new five-year distribution pact lowers the minimum allocation to provisions to 8% from 10%, so the Confederation and cantons can count on the base amount of CHF 2bn plus supplementary tranches tied to balance-sheet profit thresholds. Egypt's central bank and Ministry of Industry instead take equity stakes in distressed factories through a restructuring fund managed by CI Capital, with the National Bank of Egypt and Banque Misr among the contributing banks. The two share a mechanism: public balance sheets absorbing risk that private lenders will not, one by releasing reserves early, the other by converting debt into ownership. What separates them is the exit: the SNB's release is a timing shift with a fixed ceiling, while Egypt's equity can only be recovered by turning the factories around.