Swiss National Bank welcomes full capital backing of banks' foreign participations
The Swiss National Bank welcomes the measures in the area of banking regulation announced by the Federal Council on 22 April 2026. The planned measures are crucial for resolving regulatory weaknesses highlighted by the crisis at Credit Suisse. They are an important step towards strengthening the stability of the Swiss financial system.
A key element of the proposed measures is the full backing of a parent bank's foreign participations with Common Equity Tier 1 (CET1) capital. This measure is proportionate and specifically resolves a significant weakness in the existing regulations. Full capital backing ensures that the capital situation of the parent bank in Switzerland is not negatively impacted by losses on foreign participations. This means that measures to stabilise the bank can be better implemented in the event of a crisis.
Another key element of future adjustment to banking regulations will be measures in the area of liquidity, yet to be decided by the Federal Council. In the SNB's view, these measures are essential for strengthening the 'too big to fail' regulations.
Further information is available on the SNB website.