A-09-01

The Financial Stability Board (FSB) welcomes Switzerland's progress in implementing the Too Big To Fail (TBTF) rules, but stresses that there is still work to be done. Its second peer review report of 29 February 2024 covers the period 2022-2023 and targets systemically important banks (SIBs) operating internationally. The FSB's ten recommendations can be summarised as follows: Increase FINMA's resources quantitatively and qualitatively: in addition to increasing the size of its teams, the FSB recommends a strengthening of expertise to[...]

On December 19, 2023, FINMA published its report on Credit Suisse. This report discusses the background to the collapse (I.), and draws some "lessons learned" (II.). I. In 1856, Alfred Escher helped set up a company that excelled in commercial lending. The Schweizerische Kreditanstalt borrowed from Paul or Virginie at a lower rate than that at which it lent to "Rail" or "Wagon SA", and grew rich on the interest differential. One thing led to another, and the bank moved[...]