The Swiss National Bank (SNB) published the reporting form (Form ARIS 5.14) and related documentation for counterparty solvency risk in the interbank sector, with the form becoming valid from September 30, 2022. SNB also published the large exposure reporting forms (LER20_U and LER20_K), along with related documentation, for both parent and group entities, for which the reporting will be valid from December 31, 2022. In addition, the Swiss Federal Council approved the negotiation mandate of the Swiss delegation to the Council of Europe Committee on artificial intelligence.
Below are the key highlights of these recent updates:
- The data collection on counterparty solvency risk in the interbank sector is aimed at analyzing interlinkages in the interbank sector, with the aim to identify and monitor systemic risks. The form covers recording of the ten or twenty largest claims and liability positions vis-à-vis other banks or bank groups in Switzerland and abroad. The accompanying documentation explains the changes in Release 5.14 of the form, in comparison to the previous version of the form. This form has a quarterly reporting frequency and must be submitted within six weeks after the reference date. Reporting institutions include all banks and bank groups, except foreign bank branches in Switzerland.
- The large exposure reporting forms LER20_U and LER20_K cover data in accordance with the large exposure rules and FINMA Circular 19/1 on "Risk diversification of banks." These forms have a quarterly, semi-annual, or annual reporting frequency and must be submitted within six weeks after the reference date.
- The Swiss Federal Council is committed to Switzerland playing an active role in shaping Council of Europe rules on artificial intelligence. The Swiss delegation will advocate for the positions that the Council adopted on September 16, 2022 and promote international rules developed on the basis of existing law. The new legal framework should regulate the negative effects of artificial intelligence rather than the technology itself and will foster innovation while guaranteeing human rights, including data protection. The Federal Council also stresses the importance of transparent and inclusive negotiations involving all stakeholders, such as the private sector, non-governmental organizations and the scientific community.
- SNB Counterparty Solvency Risk Reports
- ARIS Release 5.14 (XLSX)
- Changes in Form (PDF)
- SNB Large Exposure Reports
- Press Release on Artificial Intelligence
Keywords: Europe, Switzerland, Banking, Systemic Risk, Counterparty Credit Risk, Basel, Large Exposures, Credit Risk, Reporting, Artificial Intelligence, Regtech, Swiss Federal Council, SNB
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