The government is unveiling banking reform proposals, and a new regulator is in charge
Switzerland is accelerating efforts to reform its banking regulations a year after the collapse of Credit Suisse — and handing more power to those who will enforce them.
The government is due to unveil long-awaited proposals for legislation in the coming days that are likely to touch on all of the main pillars of bank oversight, from capital and liquidity rules to controls on governance. UBS Group AG — the country's sole remaining globally-systemic bank that’s now over twice the size of the domestic economy — is in for heightened scrutiny.
A key plank is strengthening Finma, the banking watchdog which was unable to prevent years of bad management at Credit Suisse threatening the nation’s historical reputation for financial stability. That task is aided this week by the arrival of Stefan Walter, a veteran European bank supervisor who’s spent a decade going toe-to-toe with the likes of Deutsche Bank AG, to serve as Finma’s new chief executive.
“I wouldn’t call the Swiss authorities toothless, but there are certainly some things which should be changed,” said Yvan Lengwiler, a professor at the University of Basel and the head of an expert panel created to make proposals for reform. “Finma definitely needs more resources to come on to an equal footing with the banks.”...
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