27.11.2019 - The rules set out in the Banking Act should prevent systemically important banks from having to be bailed out using taxpayers' money in the event of a crisis. In its second evaluation report of June 2017, the Federal Council certified that Switzerland's regulatory approach is suitable for reducing the risk of systemically important banks.
Nevertheless, a need for action was identified. Since 2016, the two big banks Credit Suisse and UBS have had to meet provisions on loss-absorbing capital. Since January 2019, similar provisions have also been applicable to the domestically focused systemically important banks PostFinance, Raiffeisen and Zürcher Kantonalbank. In this respect, it was taken into account that these banks are less interconnected and are thus less systemically important.
The amendment to the Capital Adequacy Ordinance, which will enter into force on 1 January 2020, ensures a sufficient level of gone-concern capital for the parent banks of global systemically important banks, as a complement to the requirements applicable to their Swiss entities.