Berne wants to harden the requirements of the banks

Business 28 June, 2017

The gйant yellow will be йgalement submitted а these new requirements. (Photo: Keystone)

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A fault?

PostFinance, Raiffeisen group and the Banque cantonale de Zurich will be required to complete requirements more sйvиres in matiure own funds in the event of termination of activitй. The Council fйdйral has mandatй Wednesday, the Dйpartement fйdйral finance prйparer a project in this sense by fйvrier 2018.

The banks are too big to fail must dйjа rйpondre а new requirements in force since last July. UBS, Credit suisse, PostFinance, Raiffeisen group and the banque cantonale de Zurich have until а the end of 2019 to comply.

The measures aim to а rйduire the risks to the йconomie by increasing the own funds of the йtablissements concernйs. In the prйsent report, the Board fйdйral estimated by the nйcessaire for the two big banks UBS and Credit suisse.

But the provisions for the other three banks of national importance are jugйes insufficient by the experts of the Autoritй fйdйrale surveillance marchйs financiers (FINMA). The Council fйdйral wishes to remйdier by tightening the screw.

Enough money in case of bankruptcy

In addition to a limit infйrieure of own fund to continue their activitйs (going concern), these йtablissements will йgalement have sufficient own funds in the event of termination of activitй (gone concern).

However, they must not climb а 40% of the funds nйcessaires а the continuation of the exploitation. UBS and Credit suisse must rйpondre to mkmes requirements for the two cases.

Adaptation in progress

According to the lйgislation current, the banks of importance systйmique should have a leverage ratio of 3.1% and dйtenir a total of 13% of own funds.

The measures in force since July secure the minimum requirement to ensure the continuitй of l?operating а 4.5% for the leverage ratio (ratio between own funds rйglementaires and balance sheet total non-pondйrй) and а 12.9% for the assets pondйrйs according to risk.

These requirements apply to the cantonal Bank of Zurich and Postfinance. Those screw-а-vis the Raiffeisen group are fixйes а respectively 4,625% and 13,22%. The bar will be placйe even higher (5% and 14.3%) for UBS and Credit Suisse.

In addition to these requirements, UBS and Credit Suisse must dйtenir a capital supplйmentaire, in case of measuring consolidation, liquidation or business combination. The requirements are fixйes а 5 % for the leverage ratio and 14.3 % for assets pondйrйs according to risk.

Finished the intervention йtatique

The reluvement of these requirements should allow banks concernйes to be able to continue а ensure that their services be able to in the event of a crisis, without resorting а the help of the State, and without sanitation or a liquidation or nйcessaire, believes the Council fйdйral.