RECOMMENDATIONS ON REGULATIONS
The inquiry criticised the principles relevant to banks deemed too massive to fail, discovering that the federal government and parliament had positioned “an excessive amount of significance” on the calls for of the large banks.
The fee made 20 suggestions to the federal government, which welcomed the report’s “optimistic view of the authorities’ actions within the Credit score Suisse disaster and of the answer chosen with the takeover by UBS”.
“It calmed the markets and averted a monetary and financial disaster,” an announcement mentioned.
It agreed that the disaster uncovered “weaknesses of the prevailing too-big-to-fail rules”.
FINMA mentioned it understood the criticism of the way it applied the “regulatory filter” in 2017.
It mentioned the introduction of a accountability regime, the facility to impose fines and the flexibility to intervene at an earlier stage would bolster supervision – instruments FINMA “has up to now lacked in contrast with its worldwide friends”.
In the meantime, UBS mentioned the report “confirms that the collapse of Credit score Suisse was pushed by years of strategic errors, mismanagement and reliance on substantial regulatory concessions”.
Nevertheless, the financial institution continues to defend the concept that the principles should be adjusted in a focused approach to assure the competitiveness of the Swiss monetary sector.
