The Swiss Times - Swiss News in English

Finma: PostFinance’s Emergency Strategy Is Not Acceptable

  • By The Swiss Times
  • 26 March 2024

Finma greenlights ZKB and other bank emergency strategy’s while Postfinance works on meeting requirements.

Finma: PostFinance’s Emergency Strategy Is Not Acceptable
Keystone/PETER SCHNEIDER

The Swiss Financial Market Supervisory Authority: FINMA has scrutinised the emergency and stabilisation plans of domestically oriented systemically important banks.

With stress tests on mortgages, interest rates and a loss potential evaluations, Zürcher Kantonalbank (ZKB) was found on Tuesday to be up to Finma standards. While much of the methodology and specifics are not public, this should be a boost in confidence for ZKB customers. The first of systemically important banks to pass the new regulatory checks.

ZKB issued the additional loss-absorbing funds required for this in the form of loss-bearing bonds in 2023, according to the press release. The other requirements had already been met.

Postfinance’s emergency plan on the other hand have still not met the requirements of FINMA. FINMA claim the bank does not have the loss-absorbing funds necessary for stability under crisis, Postfinance have now submitted plans on how they will build this pool of security funds.

The assessment of Raiffeisen’s emergency plan remains unchanged. FINMA assessed it as feasible for the first time last year.

UBS Not Assessed Yet

UBS has not yet been assessed. It will revise its crisis preparedness due to the takeover and integration of Credit Suisse. It will then submit its planning for restructuring and liquidation as well as its stabilisation and emergency planning to FINMA for review.

Systemically important banks must submit an annual emergency plan to FINMA for assessment.

In this plan, they must show how the systemically important functions can be continued if there is a risk of insolvency. Systemically important functions at Raiffeisen and ZKB are the short-term lending business and at all three banks – i.e. including Postfinance – the deposit business and payment transactions.

©Keystone/SDA

Most Read

Swiss Stock Market Shutters: Tension in the Middle East Rises

19 April 2024
Swiss Stock Market Shutters: Tension in the Middle East Rises
Swiss stock market declines sharply as Middle East tensions rattle investors. All major stocks, except Nestlé, end deep in the red.

Swiss Franc Gains Value In The Face Of Global Uncertainty

19 April 2024
Swiss Franc Gains Value In The Face Of Global Uncertainty
As global tensions rise following reports of an Israeli attack on Iran, the Swiss Franc sees a significant uptick.

Two Foreigners Found Guilty Of Covid Fraud: Jailed and Fined

18 April 2024
Two Foreigners Found Guilty Of Covid Fraud: Jailed and Fined
In the Rhine Valley District Court, two men were sentenced to conditional prison terms for forging 210 Covid vaccination certificates and profiting CHF 10,000 each.

SBB Will Be 100% Green By 2030

18 April 2024
SBB Will Be 100% Green By 2030
SBB outlines a robust environmental strategy, transitioning entirely to renewable energy by 2030 and cutting greenhouse gas emissions by 50% from 2018 levels.

Stay in Touch!

Noteworthy

Uri Cantonal Government Race Heats Up: CVP Majority
Uri Cantonal Government Race Heats Up: CVP Majority
21 April 2024
Federal Council Receives Approval at IMF Meeting on Credit Suisse Crisis
Federal Council Receives Approval at IMF Meeting on Credit Suisse Crisis
20 April 2024