"A mega-authority with great potential for arbitrariness": The cantonal banks are rehearsing rebellion against the Finma
The Federal Council wants to equip the financial market supervisory authority (Finma) with new powers. The cantonal banks fear they will soon be facing an all-powerful authority.
The Swiss Federal Council wants to grant new powers to the Financial Market Supervisory Authority (Finma), including the ability to impose fines, stop bonuses, and intervene early in bank crises. The Swiss Cantonal Banks are opposing the plans, fearing they will lead to excessive regulation and increased bureaucracy. The banks argue that Finma already has sufficient powers and should focus on using them effectively, citing the collapse of Credit Suisse in March 2023 as an example.
The proposed reforms could affect 19 of 24 cantonal banks, with estimated costs ranging from tens of thousands to 3 million Swiss francs per year.
Written by urgent.news from NZZ Wirtschaft's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
