Experts See Need for Legal Reform Following CS Collapse
Published: Friday, Sep 1st 2023, 09:41
Aktualisiert am: Freitag, 13. Oktober 2023, 14:12
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The Swiss Federal Council has taken note of the report from the external experts group "Bank Stability" on the "Too big to fail" regulation. The eight-member expert group, led by Basel economist Yvan Lengwiler, proposed reforms in four areas: crisis management, liquidity, supervision and capital requirements. The Swiss Financial Market Supervisory Authority (FINMA) should be given more power to order organizational changes to make systemically important banks more viable. The Swiss National Bank (SNB) and the Federal Department of Finance (FDF) should monitor the feasibility of a restructuring. FINMA should also be able to instruct systemically important banks to place sufficient collateral with the SNB and foreign central banks to ensure access to sufficient liquid funds at all times. The public liquidity backstop, which was used in the Credit Suisse rescue, should be legally enshrined to ensure the liquidity supply of a systemically important bank in restructuring. International capital requirements are already being tightened, so no further tightening is necessary in Switzerland. The recommendations of the experts will serve as the basis for the report on systemically important banks and the Federal Council's response to the various motions submitted in the special session on Credit Suisse in Parliament, which is expected to be presented in April 2024. A parliamentary investigation commission (PUK) has been set up to investigate the events retrospectively. The Swiss Federal Council has taken note of the report from the external experts group "Bank Stability" on the "Too big to fail" regulation. The eight-member expert group, led by Basel economist Yvan Lengwiler, proposed reforms in four areas: crisis management, liquidity, supervision and capital requirements. The Swiss Financial Market Supervisory Authority (FINMA) should be given more power to order organizational changes to make systemically important banks more viable. The Swiss National Bank (SNB) and the Federal Department of Finance (FDF) should monitor the feasibility of a restructuring. FINMA should also be able to instruct systemically important banks to place sufficient collateral with the SNB and foreign central banks to ensure access to sufficient liquid funds at all times. The public liquidity backstop, which was used in the Credit Suisse rescue, should be legally enshrined to ensure the liquidity supply of a systemically important bank in restructuring. International capital requirements are already being tightened, so no further tightening is necessary in Switzerland. The recommendations of the experts will serve as the basis for the report on systemically important banks and the Federal Council's response to the various motions submitted in the special session on Credit Suisse in Parliament, which is expected to be presented in April 2024. A parliamentary investigation commission (PUK) has been set up to investigate the events retrospectively. The report from the external experts group "Bank Stability" on the "Too big to fail" regulation proposes reforms in four areas: crisis management, liquidity, supervision and capital requirements. The Swiss Financial Market Supervisory Authority (FINMA) should be given more power to order organizational changes to make systemically important banks more viable. The Swiss National Bank (SNB) and the Federal Department of Finance (FDF) should monitor the feasibility of a restructuring. FINMA should also be able to instruct systemically important banks to place sufficient collateral with the SNB and foreign central banks to ensure access to sufficient liquid funds at all times. The public liquidity backstop, which was used in the Credit Suisse rescue, should be legally enshrined to ensure the liquidity supply of a systemically important bank in restructuring. International capital requirements are already being tightened, so no further tightening is necessary in Switzerland. The recommendations of the experts will serve as the basis for the report on systemically important banks and the Federal Council's response to the various motions submitted in the special session on Credit Suisse in Parliament, which is expected to be presented in April 2024. A parliamentary investigation commission (PUK) has been set up to investigate the events retrospectively.nnnnnnnnnnnn
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