Swiss perspectives in 10 languages

Banking insolvency changes put forward

The Swiss financial watchdog, Finma, has put out to consultation proposed legal changes on how to restructure insolvent banks.

Finma’s recommendations would make it possible in insolvency cases to restructure not only an entire bank but for individual essential banking services to be transferred to other legal entities “to protect the financial system and the economy”.

The revisions to the 2005 banking insolvency law would lay down the statutory rules on restructuring banks and would apply to all banks and securities dealers.

Finma said it was “deemed necessary” in light of changes to the Swiss Banking Act – various parts of which will be amended as part of the “too big to fail” bill which should come into effect this year – and the deposit protection scheme bill which came into force in September.

Finma said the proposals comply “to a large extent” with the international rules of the Financial Stability Board.

The consultation period on the revisions runs until March 2.

In compliance with the JTI standards

More: SWI swissinfo.ch certified by the Journalism Trust Initiative

You can find an overview of ongoing debates with our journalists here. Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR