"...to arrange long-term mortgage loans at possibly constant and low interest rates for landowners" (art. 1 PfA).
To this end Pfandbriefbank issues Swiss Pfandbriefe® and grants loans to its member banks from the proceeds against pledge of mortgage cover.
Only the Swiss Pfandbrief institutes have the right to issue Swiss Pfandbriefe®. They therefore are strictly regulated. The Federal Council has the right to appoint a representative of the mortgage debtors as a member of the Board of Directors (Art. 37 PfA).