ZURICH, Aug 12 (Reuters) – Switzerland launched a public consultation on Wednesday on tougher banking regulations that would include stricter rules on bonuses at \u200cUBS in a bid to boost financial stability following the 2023 collapse \u200cof Credit Suisse. <\/p>\n
Under the draft proposals, banks would be required to structure bonus schemes to reward long-term, \u200bsustainable performance and discourage excessive risk-taking, the government said, with stricter rules for systemically important lenders such as UBS, Switzerland’s only remaining global bank following its takeover of Credit Suisse. <\/p>\n
“The rules are designed to promote the positive development of an institution over the \u200clong term, and to counteract \u2060unfavourable risk behaviour,” the government said. <\/p>\n
The government sketched out the rules last year, as part of Switzerland’s overhaul of its “too-big-to-fail” measures \u2060launched in response to the demise of Credit Suisse, which dealt a heavy blow to Swiss banking. <\/p>\n
Lawmakers are already debating related proposals aimed at rendering the banking system more \u200brobust by \u200bmaking UBS hold more capital. <\/p>\n
Under the bonus \u200bproposals, a significant portion of variable \u200ccompensation must be deferred for top executives and high earners for several years, the government said, noting that internationally, this typically meant four to five years. <\/p>\n
If misconduct or losses emerge during the deferral period, banks will be required to reduce or cancel outstanding bonuses. Paid-out bonuses could also be clawed back in cases of proven \u200cwrongdoing. <\/p>\n
Under the proposals set out on Wednesday, banks \u200bwith at least 250 employees would have to \u200bclearly assign responsibility for key \u200bdecisions to senior managers. <\/p>\n
Market regulator FINMA would also gain powers to \u200cintervene earlier when risks emerge, impose \u200bfines on institutions and \u200blevy penalties for delays in implementing supervisory orders. <\/p>\n
The plans also bolster requirements for systemically important banks’ stabilisation and resolution planning. <\/p>\n
They also envisage simplifying the transfer \u200bof collateral to the Swiss \u200cNational Bank, with the purpose of supporting banks’ ability to obtain \u200bcentral bank liquidity in a crisis. <\/p>\n
The consultation runs until November 19, 2026. <\/p>\n
(Reporting \u200bby Dave Graham; Editing by Elaine Hardcastle) <\/p>\n","protected":false},"excerpt":{"rendered":"ZURICH, Aug 12 (Reuters) – Switzerland launched a public consultation on Wednesday on tougher banking regulations that would…\n","protected":false},"author":2,"featured_media":116237,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[4],"tags":[32070,1712,25804,1548,56624,56623,17],"class_list":["post-116236","post","type-post","status-publish","format-standard","has-post-thumbnail","category-switzerland","tag-banking-regulations","tag-banks","tag-bonuses","tag-credit-suisse","tag-draft-proposals","tag-public-consultation","tag-switzerland"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/117108922609654999","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/116236","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=116236"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/116236\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/116237"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=116236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=116236"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=116236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}