Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n
The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Martin Schlegel steps into the leadership of the Swiss National Bank (SNB) this week, taking over the reins from long-time chief Thomas Jordan. Schlegel\u2019s appointment comes at a critical moment, as the nation continues to reckon with the collapse of Credit Suisse and its subsequent takeover by UBS, the country\u2019s largest bank.<\/p>\n\n\n\n This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Martin Schlegel steps into the leadership of the Swiss National Bank (SNB) this week, taking over the reins from long-time ... In a detailed report released on Tuesday, the Swiss financial regulator, FINMA, shed light on the near collapse of Credit ...
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Credit Suisse Challenges<\/h2>\n\n\n\n
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Credit Suisse Challenges<\/h2>\n\n\n\n
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Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n
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Can Switzerland’s New Central Bank Chief Restore Faith In Its Banking System?
Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse’s Near-Imploding Crisis
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