Updated banking rules will have little or no impact systemically important banks

On Thursday, as per Swiss government documents, Switzerland has updated rules to ensure that large banks hold sufficient liquidity to absorb economic shocks.

The newly updated rules will have little or no impact on bank in terms of additional capital and liquidity holdings.

The new revised rules which were sent into consultation on Thursday, aim to ensure that systemically important banks (SIBs), including Credit Suisse and UBS continue to remain resilient over stress conditions.

“Although the revised liquidity requirements for SIBs will introduce legally stricter liquidity requirements compared to the TBTF (too big to fail) regulation in force today, the authorities assume that this regulatory proposal will have little impact due to the already high level of liquidity,” said the finance ministry in a report on Thursday.

Analysts estimates that the new rules would “neither significantly increase nor reduce the overall liquidity” held by systemically important banks.

The proposed changes were also not expected to have a material impact on banks’ cost of capital, said the ministry.



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