Stricter rules for UBS and CS

For the UBS and Credit Suisse is the more demand of around 24 billion francs. The Federal Council adopted on Wednesday Amendments to the own funds regulation – in spite of criticism in the consultation process. On measures in the case of the mortgage, he refused.

In the consultation, the Federal Council had suggested that the Swiss banks to back mortgages for residential investment properties with more capital. So he wanted to strengthen the resilience of financial institutions in the event of price corrections.

The prices of such real estate have increased in the past ten years, despite the increasing signs of Oversupply were evident, he tightly held on to in April. In the meantime, the Swiss bankers Association has strengthened the self-regulation in the area, and the criteria for lending tightened.

Depressant effect

The measure was suitable to achieve an immediate dampening effect on the mortgage credit supply, and thus a further increase in the risks, writes the Federal Council. Therefore, he had decided to forego the increase in the risk weighting for residential investment properties.

The Federal Council wants to follow the development in the real estate markets closely and more measures to consider, should exacerbate the Situation.

capital

increase Recorded in the Federal Council. to the higher capital requirements for systemically important banks The more demand is for the two big banks, UBS and Credit Suisse to around 24 billion Swiss francs, such as the Federal Council writes in the explanatory notes to the amendment to the Ordinance.

In this scope have to spend the big banks, additional Bail-in-Bonds at the holding company level. As a result, the funding increased banks ' costs for both a large yearly total to a maximum of 170 million francs, writes the Federal Council.

Sufficient capital in the event of a crisis

as early as 2016, he had introduced for the UBS and the Credit Suisse Gone-Concern capital requirements. This is to ensure that a troubled system can be rehabilitated the relevant Bank, without financial assistance from the state in an orderly and settled.

Since the beginning of the year to apply such requirements in a reduced mass for Postfinance, Raiffeisen, and the Zürcher Kantonalbank. Now, the Federal Council wants to ensure that, in particular, in the parent companies ("Parent banks") and the Swiss units, which is the system to exercise the relevant functions, sufficient capital for the case of a crisis is present.

calculation method

The Changes to the own resources regulation are in accordance with the international Standard of the Financial Stability Board, writes the Federal Council. Specifically, the calculation method for the Gone-Concern requirements of the Parent banks is set.

the height of the Gone-Conern requirements for the Swiss subsidiaries, with the system-relevant functions will be adapted. In the consultation, particularly the UBS had criticised the extent of the additional capital requirement.

For small and especially well-capitalized banks and securities houses brings the regulation change from the 1. January 2020 administrative simplifications and savings. (fal/sda)

Created: 27.11.2019, 17:58 PM