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Swiss financial regulator wants to strengthen its powers after the collapse of Credit Suisse

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The financial regulator (FINMA) has demanded to expand its legal powers and plans to adapt after the collapse of one of the oldest and largest Swiss banks, Credit Suisse. banks, Credit Suisse. This was reported by UNN with reference to CNBC.

Details

FINMA announced in a report on Tuesday that it has achieved its goal of protecting Credit Suisse's solvency and financial stability.

He also also drew attention to the "far-reaching and aggressive measures" taken in previous years to supervise the bank and "correct deficiencies, particularly in the bank's corporate governance, as well as its risk management and risk culture". risk culture".

Швейцарія зупиняє виплату бонусів співробітникам Credit Suisse21.03.23, 20:22 • [views_395325]

It is reported that since the summer of 2022, FINMA has been advising the bank to take steps to prepare for emergency, but the warnings went unheeded.

FINMA has learned a number of lessons from this experience. On the one hand, a stronger legal framework is needed framework, including tools such as the senior management regime, the right to impose to impose fines and stricter corporate governance rules. On the other hand, FINMA is also adapting its supervisory approach in certain sectors and will strengthen reviewing the readiness to implement stabilization measures

- the regulator's report says.

FINMA has stated that the strategic changes announced to mitigate Credit Suisse's risks, such as reducing the size of the investment bank, focusing on the asset management business asset management business and reducing revenue volatility, have not been implemented consistently, and the ongoing scandals have undermined the bank's reputation.

Recall

In order to to save Credit Suisse, it took a huge deal with rival bank UBS, which was concluded in March with the mediation of the Swiss authorities.

During the crash Credit Suisse executives attributed the loss of confidence to market panic caused by the by the collapse of Silicon Valley Bank in the United States.

Anastasia Ryabokon

Economy

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