Swiss Bankers Association (SBA) position on the proposals of the Commission of Experts on the "Too big to fail" issue

  • The SBA takes note of the Commission of Experts’ final report on the “Too big to fail” issue.
  • The proposed measures are very severe and far-reaching and they set high standards with regard to future capital requirements. However, they will markedly strengthen highly-desired systemic stability and they will also resolve the problem of the state guarantee implicitly enjoyed to date by Switzerland’s two major banks (UBS and Credit Suisse).
  • From an international perspective Switzerland has played a pioneer role in the search for a method with which to contain the systemic risks posed by major banks. With a view to preventing the international competitiveness of the banks in question from being impaired, the SBA expects the relevant Swiss authorities to ensure that international standard-setting bodies implement measures that are similarly strict and far-reaching. The SBA also urges the relevant Swiss authorities and political circles to take international developments into account and not to make any additional demands.
  • The proposed measures are sensible and correspond with market principles. The SBA welcomes the fact that the actual business models chosen by the major banks will not be interfered with and that the tried-and-tested model of universal banking is maintained, thus preserving the attractiveness of the Swiss financial centre.
  • The SBA also welcomes the fact that the proposed measures apply only to those banks which are systemically relevant and that the long transition period (synchronising with Basel III) allows enough time for additional capital to be built up. This should ensure that any negative consequences – for example with regard to the credit market – can be contained.