Switzerland: FINMA is set to implement small banks regime
The Swiss Financial Market Supervisory Authority (FINMA) has announced it will be implementing small banks regime (regime) starting January 1, 2020.
The regime seeks to increase efficiency in regulation and supervision for small institutions.
FINMA’s goal is to reduce the regulatory burden on such institutions without jeopardizing their stability and safety. As such, participating banks will be expected to be well-capitalized and enjoy high liquidity.
In return, the banks will benefit from a significantly less complex regulatory regime under the Swiss Capital Adequacy Ordinance. For instance, they may be exempt from calculating risk-weighted assets.
Owing to the applicable exemptions, the participating banks are expected to be able to save costs.
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