Switzerland outlines stricter too-big-to-fail banking rules

The Swiss government wants to tighten up bank regulation with stricter capital adequacy requirements, more powers for the financial supervisor and the nomination of bank executives to be held accountable. +Get the most important news from Switzerland in your inbox On Friday, the Federal Council adopted the first key measures and opened the first of several consultations. In doing so, it drew on its own report on banking stability from April 2024 and the work of the Parliamentary Oversight Committee on the Credit Suisse emergency merger. Stricter capital requirements are planned for systemically important banks with subsidiaries abroad - namely UBS. In future, 100% of the book value of foreign subsidiaries will be deducted from the parent company's hard equity. Today, only partial capitalisation is required. +How to tame UBS without making the bank toothless Strengthen equity Losses in the value of these subsidiaries should therefore no longer affect the hard equity of the parent ...