The Swiss Financial Market Supervision (FINMA) has completed the annual evaluation of emergency and recovery plans for domestic systematically important banks.
Emergency plans for Zürcher Kantonalbank and Raiffeisen meet regulatory requirements. The post -funding emergency plan is still not ready to be implemented. Recovery plans for all institutions were approved.
Systematically important banks are required to submit an emergency plan to Finma for evaluation once a year. They must also have a recovery plan that has been approved annually by the Supervisory Authority.
Emergency plans for Raiffeisen and Zürcher Kantonalbank (ZKB) meet regulatory requirements.
After funding does not currently have sufficient and sufficient funds to cover the damage expected at the time the emergency plan (recapitalization capacity) is activated. Postfinance recognized this disadvantage in 2023. It has created the corresponding chapters from 2024 and will continue to do so by the end of 2025.
Transfer should also make further progress in improving the selection in the event of a crisis. An alternative strategy should indicate how to ensure the continuity of systematically important functions can be continued if restructuring is not possible. Postfinance’s alternative strategy does not meet Finma requirements.
The regulatory authority approved the recovery plans for the three systematically important banks. Following the Credit Suisse crisis, the evaluation was particularly focused on the thresholds associated with the activation of bank recovery measures and scripting analysis. All banks made progress in this area.
FINMA has revised the evaluation practice for recovery plans in dialogue with the institutions interested and will apply it from the next evaluation cycle.
Systematically important banks must submit an emergency plan to the Finma for evaluation annually, in which they show how they would maintain their systematically significant functions if they are at risk of insolvency. Systematically important functions are business and deposit transactions (Postfinance, Raiffeisen and ZKB) as well as the short -term borrowing operation (Raiffeisen and ZKB).
Systematically important banks must also submit a recovery plan to Finma for approval annually, in which they show how they could be stabilized on a sustainable basis and without government intervention in the event of destabilization. It is vital for institutions to identify and implement measures at an early stage during a crisis, which requires the rule of crisis and measures that can be defined and implemented in advance.
Unlike global systematically important banks, domestic systematically important banks are not currently subject to evaluation of their choice in accordance with internationally agreed standards (evaluation of the choice).