Peer Review of Switzerland - Review report 29 February 2024

It is the second FSB peer review of Switzerland and is based on the objectives and guidelines for the conduct of peer reviews set forth in the Handbook for FSB Peer Reviews.2 The analysis and conclusions of this peer review are based on the responses to questionnaires by financial authorities in Switzerland and reflect information on the progress of relevant reforms as of December 2023. [...] Approach to bank supervision In the aftermath of the GFC, the FSB and the G20 identified more intense and effective supervision of SIFIs, particularly global SIFIs, as critical to the safety and stability of the financial system. [...] The Federal Council has also submitted draft legislation to implement a “public liquidity backstop” in order to enable the provision of temporary funding in a SIB in the event of a crisis.41 In the aftermath of the takeover of Credit Suisse by UBS, the Federal Council instructed the FDF to review the TBTF regulations by the end of March 2024. [...] The authorities have continued to strengthen the resolution framework to enhance the resolution powers and tools available to the authorities, following recommendations in the 2019 IMF Technical Note on financial safety net and crisis management arrangements.50 As of 1 January 2023, the provisions regarding the bail-in restructuring tool have been transposed from the BIO- FINMA to the BankA to str. [...] The resolvability of the G-SIBs has been the priority for the authorities, consistent with the 2019 FSAP recommendation for FINMA to ‘enhance, expand, and expedite recovery and resolution planning, including resolvability’.52 FINMA’s resolvability assessment of the G-SIBs is in line with the FSB’s Resolvability Assessment Process (RAP) and takes into account the expectations of foreign supervisory.