Systemic Swiss Banks Not Ready for Crisis, Regulator Says – Finance Bitcoin News

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Emergency plans of two systemic Swiss banks insufficient, financial authority finds.

The assessment refers to a period prior to the rescue of Credit Suisse by UBS when the authority viewed the troubled giant’s preparedness in positive terms.The Swiss Financial Market Supervisory Authority considers insufficient the crisis plans of two of Switzerland’s main banks, Reuters reported. The regulator is not certain if Zürcher Kantonalbank and Postfinance will be manage to continue to operate in case of a crisis.

ZKB’s emergency plan is not yet ready to implement as the bank has not reserved sufficient capital for recapitalization while Postfinance “must realign its emergency recapitalization strategy,” Finma stated in anThe two are among the country’s five “systematically important banks,” along with Credit Suisse, UBS, and Raiffeisen. The assessment is based on their crisis planning documents submitted in 2022 and evaluated at the end of the year.

 

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