Federal Council confirms implementation of final Basel III standard with effect from 1 January 2025

Bern, 26.06.2024 - During its meeting on 26 June 2024, the Federal Council took note of the international implementation of the final Basel III standard for banks. The amendment to the Capital Adequacy Ordinance (CAO), which will enshrine the standard in Swiss law, will enter into force on 1 January 2025 as planned.

In November 2023, the Federal Council decided to put the finalised Basel III standard into force with effect from 1 January 2025 by means of an amendment to the CAO. Simultaneously, it instructed the Federal Department of Finance (FDF) to inform it, by end-July 2024, of the state of progress in implementing the standard internationally.

The Federal Council took note of the most recent developments. Despite delays in some countries, it sees no reason to deviate from its existing timetable. The final Basel III standard will therefore enter into force in Switzerland on 1 January 2025.

Basel III is a comprehensive package of reforms from the international Basel Committee on Banking Supervision (BCBS) which is aimed, in particular, at strengthening bank solvency and liquidity. The BCBS adopted the finalised framework in December 2017 and completed it with a revised minimum standard for market risks in February 2019. Among other things, it prescribes that risky areas of banking business must be backed with more capital, while less risky areas require less capital backing.

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