Monday, October 25, 2021

Swiss Propose Liquidity Rules Costing Banks Little or Nothing Extra

Zurich-Switzerland proposed updated rules to ensure major banks have enough liquidity to absorb shocks, but the draft changes would 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 and UBS – remain resilient under various stress scenarios, including in some cases is not adequately covered by the current regulations, 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 believe that this regulatory proposal already has a higher level of liquidity. will have little effect.” The Finance Ministry said this in a report on Thursday.

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Current estimates suggest that the proposal will “neither significantly increase nor reduce overall liquidity” with systemically important banks.

The ministry said the proposed changes were not expected to have any real impact on the cost of capital of banks.

by Brenna Hughes Neghaiwick

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This News Originally From – The Epoch Times

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