2023-12-19 21:24:11
© Reuters. Switzerland calls for more banking regulation after Credit Suisse collapse
The Swiss Financial Market Supervisory Authority (FINMA) published its report on the Credit Suisse (SIX) crisis this Tuesday. Following the study, which assesses the bank’s trajectory between 2008 and 2023, FINMA demands a stronger legal basis, specifically instruments such as the Senior Management Regime, the power to impose fines and stricter rules on corporate governance. On the other hand, FINMA will also adapt its supervisory approach in certain areas and intensify its analysis to find out whether stabilization measures are ready to be implemented.
Long before the crisis, FINMA took comprehensive and invasive measures in the context of its supervisory activities to correct deficiencies, especially in the bank’s corporate governance and its risk management and culture, the publication says. From summer 2022, FINMA also requested the bank to take several measures to prepare for an emergency.
Due to the inadequate implementation of its strategic focus areas, repeated scandals and management errors, Credit Suisse lost the trust of its clients, investors and the markets, assesses FINMA. The resulting high level of client withdrawals led to the risk of immediate insolvency by mid-March 2023, it concludes.
FINMA and other authorities have initiated decisive measures to safeguard Credit Suisse’s solvency and to support its acquisition by UBS. “The authorities thus achieved their objective of protecting the bank’s creditors and guaranteeing financial stability”, he states.
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