Statement from the SBA regarding “Finalising Basel III”

  • The Swiss Bankers Association (SBA) takes note of the publication of the definitive standards for “Finalising Basel III”, unofficially called “Basel IV”. The SBA also takes note of the fact that, following a delay of several months, the Basel Committee on Banking Supervision and its Group of Governors and Heads of Supervision has succeeded in reaching an agreement.
  • In the view of the SBA, it is very important that banks continue to have the choice between applying the model-based approach or the standard approach when calculating their regulatory capital requirements in order to ensure that the various situations of the individual institutions can be taken into account. The compromise reached regarding the design of an “output floor” is generally a step in the right direction.
  • It is important to ensure that the burdens arising from the finalisation of Basel III or Basel IV do not become a disproportionate brake on growth for the overall economy. It is also against this backdrop that conclusive and timely impact analyses that apply sound methodology are necessary (regulatory impact analyses, cost-benefit analyses).
  • The SBA will advocate a credible, proportionate and competitive Swiss implementation within the relevant national working group.
  • The SBA expects that any “Swiss finish” will be dispensed with and that when it comes to the timetable for implementation, Switzerland will not rush ahead of other relevant, comparable financial centres.