The Swiss Federal Council on Thursday started deliberation on a planned public liquidity support (PLB) for systemically important banks (SIBs), shortening the period for industry participation to June 21, 2023. Executive He said I decided to finish this matter faster because of the urgency of the matter.
the Council First introduced to PLB In March last year as part of plans to enhance the liquidity of SIBs in the country during the settlement or liquidation process. At the time, the Swiss executive branch tasked the Federal Ministry of Finance with preparing a draft advisory by mid-2023.
According to Swiss banking law, SIBs such as Credit Suisse, UBS and Raiffeisen perform important functions such as local deposit, lending and payment transactions. The pillar is state-backed tier 3 liquidity that is provided to these types of banks if they encounter financial problems and are unable to meet their financial obligations after exhausting their liquid assets. General liquidity support becomes available when the second emergency liquidity provided by the SNB proves to be insufficient.
The Federal Council’s decision follows recent problems with the largest Swiss bank, Credit Suisse. During the height of the recent banking crisis in the US, the already ailing banking giant saw its shares plunge to an all-time low. To prevent a banking crisis, the main Swiss monetary authority mobilized CHF109 billion for an emergency liquidity rescue for Credit Suisse and brokered a quick takeover of the lender by rival UBS.
in a permit Released Thursday, the Swiss executive branch indicated that it used emergency laws during the period to introduce a framework to support public liquidity in its efforts to “prevent a disorderly Credit Suisse bankruptcy.” These provisions have now been added to draft amendments to the law on banks in the country seeking to introduce the PLB.
“To avoid its expiration, the Federal Council must submit a draft to Parliament within six months, in order to convert it into an ordinary law,” the council added.
“This draft aims to transfer to ordinary law not only the framework of the PLB instrument as introduced in March 2023 by the Federal Council by decree, but also other measures introduced at that time aimed at supporting the takeover of UBS. The Credit Suisse executive branch is further explained.
Switzerland began imposing rules on SIBs in 2012, which require higher capital and liquidity requirements in an effort to reduce the impact on the Swiss economy of a major bank failure. The rules have been tightened over the years. However, the government is now looking to introduce PLB.
Gate.io in Hong Kong; the new CFI office; Read snippets of today’s news.
The Swiss Federal Council on Thursday started deliberation on a planned public liquidity support (PLB) for systemically important banks (SIBs), shortening the period for industry participation to June 21, 2023. Executive He said I decided to finish this matter faster because of the urgency of the matter.
the Council First introduced to PLB In March last year as part of plans to enhance the liquidity of SIBs in the country during the settlement or liquidation process. At the time, the Swiss executive branch tasked the Federal Ministry of Finance with preparing a draft advisory by mid-2023.
According to Swiss banking law, SIBs such as Credit Suisse, UBS and Raiffeisen perform important functions such as local deposit, lending and payment transactions. The pillar is state-backed tier 3 liquidity that is provided to these types of banks if they encounter financial problems and are unable to meet their financial obligations after exhausting their liquid assets. General liquidity support becomes available when the second emergency liquidity provided by the SNB proves to be insufficient.
The Federal Council’s decision follows recent problems with the largest Swiss bank, Credit Suisse. During the height of the recent banking crisis in the US, the already ailing banking giant saw its shares plunge to an all-time low. To prevent a banking crisis, the main Swiss monetary authority mobilized CHF109 billion for an emergency liquidity rescue for Credit Suisse and brokered a quick takeover of the lender by rival UBS.
in a permit Released Thursday, the Swiss executive branch indicated that it used emergency laws during the period to introduce a framework to support public liquidity in its efforts to “prevent a disorderly Credit Suisse bankruptcy.” These provisions have now been added to draft amendments to the law on banks in the country seeking to introduce the PLB.
“To avoid its expiration, the Federal Council must submit a draft to Parliament within six months, in order to convert it into an ordinary law,” the council added.
“This draft aims to transfer to ordinary law not only the framework of the PLB instrument as introduced in March 2023 by the Federal Council by decree, but also other measures introduced at that time aimed at supporting the takeover of UBS. The Credit Suisse executive branch is further explained.
Switzerland began imposing rules on SIBs in 2012, which require higher capital and liquidity requirements in an effort to reduce the impact on the Swiss economy of a major bank failure. The rules have been tightened over the years. However, the government is now looking to introduce PLB.
Gate.io in Hong Kong; the new CFI office; Read snippets of today’s news.