economy
Switzerland pushes ahead with post-Credit Suisse crackdown
Financial regulator may be given greater powers to intervene at troubled banks and levy fines
TL;DR
- Switzerland is introducing new banking regulations in response to the Credit Suisse collapse.
- The proposed changes aim to give the financial regulator, Finma, greater powers to intervene and fine banks.
- Systemically important banks will face new rules on executive accountability and bonus clawbacks.
- A separate, contentious proposal requires UBS to hold additional capital against its foreign subsidiaries.
- The Swiss Bankers Association supports some measures but warns Finma could become a 'super-authority'.
- Parliamentary committees are debating the proposed capital requirements for UBS, exploring alternatives to higher equity demands.
- Legislative changes could come into effect as early as 2029.