Switzerland: Financial Sector Assessment Program-Detailed Assessment of Observance—Basel Core Principles for Effective Banking Supervision

Banking supervision in Switzerland has had to navigate a sequence of demanding and stressful events since the last FSAP. These events include continued evolution of international capital and liquidity standards, the global pandemic, and the crisis of Credit Suisse, in 2023, which led to the merger of the two Swiss Global Systemically Important Banks (G-SIBs). Switzerland has also implemented the Basel III (final) rules in January 2025. Given that certain major jurisdictions have yet to finalize their rules or have decided to delay their implementation of the new Basel rules, this should be commended. The turbulence in financial markets of recent years only serves to highlight the importance of having a prudent global regulatory framework in place. The timely implementation of the Basel III framework sends a positive signal about the prudential soundness promoted by the Swiss authorities. Legislative reforms proposed by the Federal Council in the aftermath of the 2023 crisis go in the right direction and will help reinforce bank supervision, although they will need to be approved by the Parliament and will take years to implement.