The recent report on the Credit Suisse crisis has revealed a complex narrative of mismanagement and regulatory shortcomings that almost caused a global financial crisis in 2023.
The inquiry, which lasted for 18 months, examined the actions of both the bank's executives and the Swiss financial markets watchdog, Finma. The report places the primary blame on Credit Suisse's leadership, stating that the Board of Directors and senior management were responsible for the erosion of confidence in the institution. The report also criticizes Finma for being "ineffective" in its role during the crisis and suggests granting it the authority to impose fines to enhance its enforcement capabilities.
The report highlights a trend where the Swiss government made concessions to maintain the competitiveness of large banks, raising concerns about the balance between competitiveness and robust regulatory frameworks. The report emphasizes the importance of timely risk assessments and improved collaboration and information sharing among regulatory agencies.
The commission has put forth 20 recommendations to strengthen the Swiss banking regulatory framework, including enhanced powers for Finma. The Federal Council supports these recommendations, and UBS, which acquired Credit Suisse, calls for targeted adjustments to regulatory rules. The focus now is on evolving regulatory frameworks to prevent similar crises in the future while maintaining a competitive banking environment and ensuring robust oversight.