Swiss finance minister calls for stricter banking regulations to restore trust

Swiss Finance Minister Karin Keller-Sutter recently emphasized the need for stricter banking regulations in Switzerland's financial sector. She highlighted the government's commitment to maintaining a competitive financial center while ensuring economic protection.

Government Inquiry into Credit Suisse

The Swiss parliament is preparing to release findings from an inquiry into the near collapse and subsequent rescue of Credit Suisse, which will inform government-backed reform proposals for UBS Group AG.

Keller-Sutter acknowledged the risks in banking and the unpredictable nature of the financial landscape.

Capital Requirements for UBS

Discussions are ongoing regarding the capital requirements for UBS, particularly concerning its foreign subsidiaries.

The Swiss central bank and financial regulator have advocated for raising the capital backing required for large banks' foreign units from 60% to 100% to enhance stability.

The Swiss government and UBS have had contentious discussions about potential capital requirement increases.

Granting Finma Authority

Keller-Sutter supports granting Finma the authority to impose fines on bankers, but this measure is still under consideration.

Her leadership as finance minister and upcoming role as the rotating president of Switzerland will be crucial in shaping the future of the country's financial landscape.

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