FINMA Reviews Recovery and Resolution Plans of Systemic Entities
The Swiss Financial Market Supervisory Authority (FINMA) assessed the recovery and resolution plans of systemically important Swiss financial institutions. FINMA also published its annual report, which highlights the importance of prompt implementation of final Basel III regulation and notes that FINMA plans to implement enhanced liquidity requirements for systemically important banks; these liquidity requirements are set to enter into force in mid-2022 and form part of Switzerland’s “too big to fail” regulation.
The annual assessment of recovery and resolution planning of systemically important Swiss financial institutions revealed the need for further actions on the part of the banks and financial market infrastructures as well as on the part of the authorities. With respect to the financial market infrastructures, FINMA approved the recovery plans of the central counterparty SIX x-clear and the central securities depository SIX SIS for the first time subject to conditions. Additionally, FINMA saw further progress in the global resolvability of the major Swiss banks Credit Suisse and UBS and re-approved their recovery plans. However, FINMA stated that the emergency plans of the domestically oriented, systemically important banks PostFinance, Raiffeisen, and Zürcher Kantonalbank cannot be implemented, as none of these banks has reserved sufficient loss-absorbing funds to be able to be recapitalized and continued in the event of a crisis.
Related Links (in English and German)
Keywords: Europe, Switzerland, Banking, Basel, Liquidity Risk, Credit Suisse, Regulatory Capital, Resolution Framework, Resolution Planning, Too-Big-to-Fail, Systemic Risk, UBS, FINMA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
UK Regulators Issue Multiple Updates: FPC Maintains CCyB at 1%Next Article
BCL Updates Documentation for AnaCredit ReportingRelated Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
NGFS Report Explores Quantification of Climate Risk Differentials
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
EC Publishes Results on Review of Web Accessibility Directive
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
MAS Consults on Adjustment Spreads for Conversion of SOR Contracts
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
