FINMA Identifies and Assesses Risks Facing Financial Sector
FINMA published the 2020 Risk Monitor, which identifies the key risks facing the supervised institutions in Switzerland and describes the resulting focus of its supervisory activity. This version of Risk Monitor also discusses risks associated with the use of big data in the insurance sector. The Risk Monitor shows elevation of certain risks and identifies the new key risk of impending defaults or corrections in corporate loans and bonds abroad, in relation to the assessment of risks driven by the ongoing COVID-19 pandemic.
In addition, FINMA believes that the following risks that were identified as principal risks in 2019 still remain in focus for the supervised institutions and the Swiss financial center:
- Persistent low interest-rate environment (increasing)
- Possible correction on the real estate and mortgage market (increasing)
- Disorderly abolition of LIBOR benchmark interest rates (decreasing)
- Cyber-attacks (increasing)
- Money laundering (same)
- Increased impediments to cross-border market access (same)
Other long-term risks identified by FINMA include demographic aging, declining financial instrument valuations in asset management, and financial risks arising from climate change. In the 2020 Risk Monitor, FINMA also outlines how it has continued to pursue its agenda for climate risk mitigation since last year.
Related Links
Keywords: Europe, Switzerland, Banking, Insurance, Risk Monitor, Big Data, Climate Change Risk, COVID-19, Cyber Risk, Insurtech, FINMA
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.

Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Previous Article
ESMA Publishes Risk Dashboard for Third Quarter of 2020Related Articles
BIS Innovation Hub Sets Out Work Program for 2021
BIS Innovation Hub published the work program for 2021, with focus on suptech and regtech, next-generation financial market infrastructure, central bank digital currencies, open finance, green finance, and cyber security.
EC Plans to Consult on Crisis Management and EDIS Framework Revisions
In an article published by SRB, Mairead McGuinness, the European Commissioner for Financial Services, Financial Stability, and Capital Markets Union, discussed the progress and next steps toward completion of the Banking Union.
EBA Finalizes Remuneration Standards for Investment Firms in EU
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
ECA Recommends Actions to Enhance Resolution Planning for Banks
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE Publishes Key Elements of the 2021 Stress Testing for Banks in UK
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA Proposes Rules on Identity Verification of Depositor Protection
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB Publishes Work Program for 2021
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA Issues Update on Move to New Data Collection Platform
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank Publishes Derivation Rules for Reporting by Banks
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED Revises Capital Planning and Stress Testing Requirements for Banks
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.