Switzerland Is Preparing A Reform Of The Bank Supervision System

The Swiss government is working on a reform that will alter the way the nation’s banks are supervised.

Bloomberg reports that the government will present its ideas, which include a range of topics from corporate governance to capital and liquidity requirements, in the next few days.

The reform was prompted by significant issues, which one of the biggest Swiss banks, Credit Suisse, dealt with last year before being acquired by UBS. Among the objectives of the new regulations is to alter the risk assessment methodology used by Swiss banks.

Prior to the new regulations, Finma had no jurisdiction to fine banks. Furthermore, bank executives will now be held personally accountable for their actions or omissions. Additionally, the regulator will have the authority to limit and enforce regulations on banks regarding the level of management bonuses.

source: bloomberg.com

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