reactions to parliamentary inquiry report on credit suisse collapse and regulation reforms

The recent report on the collapse of Credit Suisse has sparked reactions from both the political and business sectors in Switzerland.

Regulatory Reforms and Efforts

The report emphasizes the need for regulatory reforms and acknowledges the efforts of authorities to prevent a broader financial crisis.

Attribution of Collapse

The collapse was attributed to poor management rather than systemic failures within the banking sector.

Response from Swiss National Bank (SNB)

The Swiss National Bank (SNB) has responded by highlighting the importance of learning from the crisis and strengthening regulations.

Response from Financial Market Supervisory Authority (FINMA)

The Financial Market Supervisory Authority (FINMA) has welcomed the recommendations for expanded oversight and expressed its commitment to enhancing supervision.

Support from Swiss Bankers Association (SBA)

The Swiss Bankers Association (SBA) also supports enhanced regulation that focuses on effective use of existing tools.

Government's Intentions

The government intends to incorporate the report's findings into future regulatory enhancements.

Divergent Views on Regulatory Approaches

There are divergent views on regulatory approaches, with some advocating for stricter regulations and others cautioning against overregulation.

Reactions from Political Factions

The Social Democratic Party (SP) calls for immediate action to mitigate risks posed by UBS's size, while Economiesuisse warns against regulatory overreach that could hinder UBS's competitiveness.

Proposals from the Greens

The Greens propose strict controls on the newly formed mega-bank and advocate for robust management rules and increased liquidity requirements.

Response from Federal Council

The Federal Council acknowledges the report's findings and shows a willingness to adapt and strengthen regulations.

Future of Banking Regulation in Switzerland

The discussions surrounding regulatory reform will shape the future of the Swiss financial landscape, with a focus on balancing oversight and competitiveness.

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