The recent report on Credit Suisse has revealed significant oversight failures and criticized the Swiss Financial Market Supervisory Authority (Finma) for its ineffective regulation of the bank.
The report found that the bank's Board of Directors and management were primarily responsible for the loss of trust in the institution. Despite warnings and procedures against Credit Suisse, Finma failed to revoke the bank's "certificate of irreproachable activity."
The report also raises questions about the regulatory framework that allowed Credit Suisse to operate with vulnerabilities. Critics argue that the Swiss government and parliament have prioritized the demands of large banks, and the report emphasizes the need for stricter requirements for systemically important institutions.
The merger of Credit Suisse and UBS has raised concerns about competition and stability in the Swiss banking sector. There are calls for enhanced supervisory measures and increased resources to prevent a recurrence of such a crisis. UBS Chairman Colm Kelleher has expressed concerns about potential regulations disadvantaging the bank compared to international competitors.
The lessons learned from the Credit Suisse debacle will shape the future of banking regulation in Switzerland.