Switzerland called for tightening banking regulation after the collapse of Credit Suisse

4/28/2023, 1:52:36 PM

Highlights: The head of the Central Bank of Switzerland has called for tighter regulation of the country's banks. The move comes after the Swiss government approved a $118 billion bailout plan for U.S. bank UBS. UBS is one of the largest banks in the world, with a market value of more than $1.2 trillion. It is the largest bank in the United States, followed by Swiss bank Swiss National Bank (SNB). The SNB is the second-largest bank in Switzerland, after Swiss bank RBS.

The head of the Central Bank of Switzerland, Thomas Jordan, called for tighter banking regulation against the backdrop of the collapse of one of the country's largest banks, Credit Suisse.

"Banking regulation and supervision should be reviewed in light of recent developments. This will require in-depth analysis. It is necessary to avoid quick decisions, "RIA Novosti quoted him as saying.

According to Jordan, it is necessary at the legislative level to oblige credit institutions "to keep a sufficient number of assets that they can pledge or transfer at any time without restrictions." In addition, it is assumed that banks will be able to present these assets as collateral for existing liquidity mechanisms.

At the end of March, the Swiss government approved a 109 billion Swiss franc ($118 billion) bailout plan to allow UBS to buy out Credit Suisse.

It is noted that the government's assistance consists in the allocation of two urgent mandatory loans to UBS.

The Budget Committee of the United States Senate published data according to which the Swiss bank Credit Suisse serviced the accounts of high-ranking Nazi officials until 2020.