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| Swiss Bankers Association supports government measures to strengthen depositor protection
– Maximum protection for deposits |
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Basel, 5 November 2008. The Swiss Bankers Association (SBA) supports the
measures announced today by the Federal Council to strengthen depositor protection. The raising of the
protection level to CHF 100,000, the backing with assets, the raising of the system ceiling to CHF 6
billion and the rapid disbursement of all available liquidity will provide a lasting boost to the depositor
protection system’s credibility. The confidence-building measures ensure maximum protection for depositors.
In the unlikely event of an insolvency, depositors will be able to quickly recover their money; this
puts the Swiss depositor protection system back on an comparable footing internationally. Reviewing
issues – especially relating to insolvency law – as part of a comprehensive analysis of the depositor
protection system remains important for the SBA.
Protection
of creditors has top priority in Switzerland. In recent months, the SBA has worked constructively with
the relevant authorities on adjusting the current depositor protection system. This became urgent in
the past few weeks, as other financial centres comparable to Switzerland had substantially enhanced
protection of bank deposits. There was therefore a danger that, on paper, depositor protection in Switzerland
could appear inadequate – even though Swiss banks are among the best-capitalised in the world and deposits
at Swiss banks have not been in danger at any time. The measures are for a limited period.
The
core elements of the new provisions are:- Raising
of the privilege and protection level from CHF 30,000 per depositor to CHF 100,000 and preferential
treatment (without protection) of CHF 100,000 for restricted pension assets and vested pension benefits.
- Privileged
deposits to be 125%-backed by assets.
- To speed up disbursement
in the event of the closure of an institution; not only immediate payment of CHF 5,000 per customer,
but distribution to depositors of the entire liquidity available at the insolvent institution.
- Raising
of the system’s ceiling from CHF 4 billion to CHF 6 billion.
The
SBA supports these measures and expects that when they go before parliament the greatest attention will
be given to their practicality, especially with regard to the issue of accountable assets. The raising
of the privilege and protection levels, plus the enhanced preferential treatment of pillar 3a and vested
benefit accounts, creates further confidence in the Swiss banking system and is credible and internationally
competitive. The SBA believes that the measured raising of the system ceiling to CHF 6 billion maintains
the system’s stability. Placing a time limit on the measures’ applicability allows further in-depth
examination of all depositor protection-related issues. The SBA believes it is essential that the insolvency
law be altered so that banks going into insolvency no longer have to close their doors, but can instead
continue in business under supervision for the purpose of paying out protected assets.
| Contacts |
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| Thomas Sutter |
James Nason |
| Head of Communications Switzerland |
Head of International Communications |
| Tel. +41 61 295 92 06 |
Tel. +41 61 295 92 15 |
| Fax +41 61 272 53 82 |
Fax +41 61 272 53 82 |
 www.swissbanking.org |
www.swissbanking.org |
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Junior
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