Statement from the SBA regarding the revision of financial reporting standards for banks

  • The SBA welcomes the revision of financial reporting standards for banks in principle. This ensures that the banks can continue to apply a well-suited, stand-alone and generally recognised financial reporting standard in future.
  • As a result of the early and constructive involvement of the sector, it was possible to ensure in many areas that the new standards are expedient in practice and that they can be implemented by the banks at an acceptable cost and with reasonable effort.
  • Adjustments are still required on the following points:
    • We firmly reject that the minimum structuring requirements are no longer to be governed at the ordinance level. This would not correspond with the importance and scope of these guidelines and would diminish the legal and planning certainty for the banks in an undue manner.
    • The planned mandatory offsetting of value adjustments with the corresponding assets must be dispensed with. The offsetting of value adjustments leads to excessive costs and efforts for small banks in particular, with no corresponding benefit.
    • A restriction of the Swiss Code of Obligations regarding the application of collective valuation for participations, tangible fixed assets and intangible assets should also be dispensed with, as this would otherwise constitute an unjustifiable unequal treatment of the banks compared to other businesses.
  • The SBA’s complete statement regarding the draft legislation can be found here.