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SBA’s position on the 13 September 2010 decisions of the Group of Governors and Heads of Supervision on capital standards for banks (Basel III)

  • The SBA recognises the fundamental need to improve capital and liquidity levels in the banking system in order to strengthen systemic stability. The SBA for the moment takes note of the decisions at hand of the Group of Governors and Heads of Supervision.
  • A preliminary examination shows that the proposals are far-reaching but also on track as far as the necessary measures are concerned. Improving the quality of capital and the possible introduction of contingent capital in particular are measures worth considering.
  • However, the decisive issue remains the manner in which these measures will now be implemented at national level. By international comparison Swiss banks are already well-capitalised so the SBA therefore expects the Swiss banking regulator (FINMA) to display a sense of proportion, provide for generous deadlines for implementation and to take international regulatory developments into account.
  • Any weakening of the Swiss financial centre’s international competitiveness must be avoided at all costs in order to prevent negative impacts on Switzerland’s economic development (e.g. via curtailed loans to industry and business).