The Confederation, the SNB, and the Swiss Financial Market Supervisory Authority (FINMA) have compiled a package of measures together with the banks to deal with the impact of COVID-19 crisis. In this context, SNB is introducing a new COVID-19 refinancing facility for banks from March 26, 2020. In addition, after consulting with FINMA, SNB submitted a proposal to the Federal Council requesting that the countercyclical capital buffer (CCyB) be reduced to 0%, with immediate effect. This is designed to further support the banks in their key role as lenders.
The COVID-19 refinancing facility is aimed at strengthening the supply of credit to the Swiss economy by providing the banking system with additional liquidity. There is no upper limit on the amounts available under the facility and draw-downs can be made at any time. The refinancing facility will operate in conjunction with the federal government’s guarantees for corporate loans. The facility allows banks to obtain liquidity from SNB, which is secured by the federally guaranteed loans, thus enabling banks to expand their lending rapidly and to access the required liquidity.
Keywords: Europe, Switzerland, Banking, COVID-19, CCyB, Refinancing, CRF, Credit Risk, Regulatory Requirements, FINMA, SNB
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous ArticleIOSCO and Securities Regulators Coordinate Responses to COVID-19
The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).
The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.
The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.
The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.
The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.
The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.