Featured Product

    FINMA Evaluates Recovery and Resolution Plans of Systemic Entities

    March 25, 2021

    FINMA published the annual report for 2020 as well as an annual assessment of the recovery and resolution planning by the systemically important financial institutions in the country. The assessment reveals that, for the first time, all domestic systemically important banks or D-SIBs (PostFinance, Raiffeisen, and Zürcher Kantonalbank) have credible resolution strategies. However, further steps needed for the emergency plans to be effective include the build-up of the loss-absorbing capacity required for recapitalization in a crisis; this also includes the development of an alternative strategy in the case of PostFinance. The two global systemically important banks (or G-SIBs), Credit Suisse and UBS, also improved their global resolvability.

    The assessment showed that measures to recapitalize and continue the banking business of Zürcher Kantonalbank, Raiffeisen, and PostFinance differ on a number of points and there are still gaps in implementation. All the three domestically focused banks meet the special liquidity requirements defined by FINMA for a credible emergency plan and have closed gaps with regard to operational dependencies, specifically in the area of access to financial market infrastructures. For UBS and Credit Suisse, FINMA continues to regard the Swiss emergency plans as effective, although UBS's approval remains subject to the proviso that it continues to reduce certain financial interdependencies within the group according to the agreed schedule; these two large banks were  able to achieve further progress in their global resolvability, by building up the necessary capabilities or removing obstacles to the implementation of the resolution strategy. In 2020, FINMA approved the recovery plans of the systemically important banks as at the end of 2019. Finally, FINMA concluded that the systemically important financial market infrastructure entities (SIX x-clear and SIX SIS) do not not meet all the requirements for approval. To achieve global resolvability, regulatory and supervisory requirements are still to be developed or finalized on the part of authorities, particularly in the area of liquidity.

     

    Related Links

    Keywords: Europe, Switzerland, Banking, Basel, D-SIBs, FMI, Annual Report, Recovery and Resolution Planning, Resolution Framework, G-SIBs, Systemic Risk, FINMA

    Featured Experts
    Related Articles
    News

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News
    News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News
    News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News
    News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News
    News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News
    News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News
    News

    DNB Publishes Multiple Reporting Updates for Banks

    DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.

    February 28, 2023 WebPage Regulatory News
    News

    NBB Sets Out Climate Risk Expectations, Issues Reporting Updates

    The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting

    February 24, 2023 WebPage Regulatory News
    News

    EBA Updates Address Securitization Standards and DGS Guidelines

    The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.

    February 21, 2023 WebPage Regulatory News
    News

    FSB Publishes Letter to G20, Sets Out Work Priorities for 2023

    The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023

    February 20, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8793