With targeted measures: Bankers’ Association open to closing “regulatory loopholes”

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The Swiss banking center showed stability last year despite the CS crisis, the bankers’ association announced at its annual media conference on Tuesday. The majority of Swiss banks delivered strong annual results last year, thanks in particular to increased success in their interest business.

The SBA emphasizes that the acquisition of Credit Suisse by UBS, as well as the measures taken by the Swiss authorities, provided immediate stability. “Switzerland thus single-handedly prevented an international financial crisis.” The takeover of CS was made possible by “Too Big to Fail” (TBTF) arrangements.

But the SBA also acknowledges that there are gaps in the regulations: The association thinks action is needed, for example, on issues such as providing rapid liquidity for banks that are still solvent and can no longer refinance themselves in the market. A “public liquidity support” (PLB) should also be introduced in Switzerland for the restructuring of systemically important banks.

The bankers’ association also advocates a liability regime for bank managers (“senior manager regime”) and the obligation to have a “long-term remuneration policy”, as Finma has already called for.

The industry association is open to giving greater powers to financial market supervisor Finma “if action is needed as part of the review,” the announcement said.

The Association, on the other hand, sees the capital requirements of systemically important banks as sufficient: SBA emphasizes that it does not see a general tightening need.

Swiss banks are likely to expect “robust” growth in 2024 despite a rather mixed economy in Switzerland, according to a new industry forecast. Although a decline in interest business is expected, this should be balanced by stronger commission and service business, according to the “Swiss Banking Outlook”.

Behavior is the expectation of net new money inflows in cross-border business. Finally, there are said to be concerns that other financial centers could overtake Switzerland as an asset management location.

(SDA)

Source :Blick