[ad_1]
Keep knowledgeable with free updates
Merely signal as much as the European banks myFT Digest — delivered on to your inbox.
Switzerland’s monetary regulator has referred to as for harder powers to supervise banks after claiming it did every thing it may to attempt to stop the collapse of Credit score Suisse this 12 months.
Finma on Tuesday printed an 84-page report into the failure of Credit Suisse, which despatched shockwaves by means of the Swiss monetary system.
It discovered the 167-year-old financial institution’s downfall was the results of “insufficient implementation of its strategic focus areas, repeated scandals and administration errors”.
Thomas Hirschi, head of Finma’s disaster unit and banks division, mentioned the regulator noticed issues at Credit score Suisse early and “used its full vary of instruments” to attempt to stabilise the financial institution.
“Though its actions had an impact, they have been unable to beat the causes of the lack of confidence, reminiscent of shortcomings in technique implementation and in danger administration,” he added.
Switzerland’s monetary regulatory system has lengthy been criticised internationally for missing the authority of its international friends and permitting banks to function with the specter of minimal punishments for misdeeds.
Within the report, Finma mentioned that to enhance its oversight of the finance sector, it might want to have the ability to high-quality corporations. It additionally referred to as for the introduction of a senior managers’ regime, just like the system within the UK, the place there’s a lot higher private accountability for executives.
The calls echo these made last month by Sergio Ermotti, chief govt of UBS, which agreed to rescue Credit score Suisse in March.
Ermotti was endorsing a package deal of reforms to Switzerland’s banking guidelines introduced by a government-appointed panel of monetary specialists in September.
Among the many principal findings of the parliamentary group, which was tasked with analysing the near-collapse of Credit score Suisse, was that Finma was too weak to handle banking crises adequately.
As a part of its report on Tuesday, Finma set out intimately its strategy to supervising Credit score Suisse in its remaining scandal-plagued years.
Since 2012, Finma mentioned it carried out 43 preliminary investigations into the financial institution for potential enforcement proceedings, issued 9 reprimands, filed 16 legal expenses and accomplished 11 enforcement proceedings in opposition to the financial institution and three in opposition to people. It added that 11 of those 14 proceedings happened since 2018.
“Finma constantly knowledgeable Credit score Suisse of dangers, referred to as for enhancements, and imposed far-reaching measures,” the regulator mentioned. “These included intensive capital and liquidity measures, interventions within the financial institution’s governance and remuneration, and restrictions on enterprise actions.”
It mentioned that between 2018 and 2022, Finma carried out 108 on-site supervisory evaluations on the financial institution and recorded 382 factors requiring motion — 113 of which have been classed as excessive or crucial danger.
“These figures and measures illustrate that Finma exhausted its choices and authorized powers,” the regulator mentioned.
[ad_2]
