English Translation:
   Philip H. Beard. PhD,
   Sonoma State University

   Rohnert Park, California, USA

Excerpt from the report “WIR and the Swiss National Economy” (page 23)


Chapter 10. The WIR Credit Clearing System from the Members’ Perspective


 Modus operandi of the Central Office

Reading the entire document is not necessary. The economic benefits are illustrated  in the excerpt below and show how the trade system is capitalized, how the issue of trade currency is asset-backed so that fiscal balance is maintained and how the system’s surplus covers any potential loss in the credit extension process. It also illustrates how the System earns its money.

In 1997 the WIR Bank/Trade System opened its doors and books to Prof. Tobias  Studer, Chief Economist for Basel University who wrote a 58-page report on the bank and its trade system.

WIR and the Swiss National Economy
   By Prof. Tobias Studer
   Department of Economics
   University of Basel, Switzerland

   Published by the WIR Bank, Basel​

Professor Philip Beard, PhD, Sonoma State University provided the English translation for the document. 

All rights reserved.

The activities of the WIR Bank can be understood in simplified terms through a juxtaposition of its balance sheet and its profit-loss statement. As of the end of 1997 the positive side of the balance sheet was dominated by WIR assets and mortgage assets totaling 885 million francs. They match the loans received by the WIR members, upon which the latter must pay interest. The interest stemming from the loan business appears on the profit-loss statement as approximately 18 million francs, representing average interest costs of 2.0%. Dominant on the liability side of the balance sheet, amounting to 844 million francs, are the WIR obligations to the members, i.e. the circulating WIR money. These obligations, being interest-free, appear in the profit-loss statement as a finance cost of zero percent. The WIR money furthermore is the basis for the profit from credit clearing activities, totaling 20 million francs.

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WIR and The Swiss National Economy

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