Swiss Federal Council plans measures against second Credit Suisse case

Swiss Federal Council plans measures against second Credit Suisse case

The Swiss Federal Council plans to introduce new rules to prevent a possible second case like that at Credit Suisse. These rules include a clearer allocation of responsibilities, strengthening the powers of financial market supervision and the creation of more crisis-proof resolution plans. The aim is to protect the financial system from further shocks. However, the government fundamentally rejects higher capital requirements and a ban on bonus payments.

The Federal Department of Finance had already announced a review of the regulations after Credit Suisse narrowly avoided collapse. A 339-page report was published that confirms the effectiveness of previous financial stability measures, but also points to gaps and a need for action to further develop and strengthen banking regulation.

Politicians agree that adjustments are needed, but the concrete implementation of the measures is likely to spark debate in Parliament. The shares of the largest Swiss bank UBS recorded a price decline of 1.6 percent after the new rules were announced, after having previously risen by almost one percent during the day. The debate about the new regulations and their impact is expected to intensify in the coming weeks.