ZURICH, Sep 30 (Businesshala) – Switzerland proposed updated rules to ensure major banks have enough liquidity to weather the shock, but the draft changes will cost banks little or nothing in additional capital and liquidity holdings , government documents showed on Thursday.
The proposed amendments, which were sent for consultation on Thursday, are aimed at ensuring that systemically important banks (SIBs) – including Credit Suisse (CSGN.S) and UBS (UBSG.S) – are able to cope with various stress scenarios. Remain flexible under the provisions of the Act, including in some cases not adequately covered by the current rules, the government said.
“While the revised liquidity requirements for SIBs will legally introduce stricter liquidity requirements than the TBTF (Too Big Fail) regulation in force today, officials are of the view that this regulatory proposal already has a higher level of liquidity. will have little impact.” The Finance Ministry said this in a report on Thursday.
current estimate offer shown Systemically important banks will have “neither a significant increase nor decrease in overall liquidity”.
NS proposed changes The ministry said the cost of capital of banks was also not expected to have a significant impact.