The difficulties of a big bank of importance for the economic system can constitute a considerable burden for the economy. Even in Switzerland. This was shown by the latest global financial and economic crisis. The Federal Council wants to prevent such banks from being too big to fail and to prevent the state from having to use tax revenues to save them.
To this end, the Banking Act was revised (in force since 1 March 2012) and was expanded with specific provisions for regulating systemically important banks. The banks have to comply with supplementary capital and risk diversification requirements to prevent taxpayers from having to bail them out in the future. Moreover, they have to present an effective emergency plan to the supervisory authority.
The first evaluation report of February 2015, drawn up on the basis of the work of the group of experts appointed by the Federal Council and led by Professor Aymo Brunetti, saw Switzerland's TBTF provisions in a positive light by international standards. Nevertheless, action is needed.
In october 2015, the Federal Council adopted the parameters for amendments to the current too-big-to-fail provisions. It thereby fleshes out the need for action identified in the evaluation report of February 2015 to eliminate the too-big-to-fail risks in Switzerland.
Last modification 19.10.2016