The collapse of Credit Suisse, once Switzerland's second-largest bank, was attributed to significant errors made by the Swiss authorities, according to a parliamentary commission of inquiry (PUK).

Errors by Swiss Authorities

The commission's report highlighted misjudgments by the Financial Market Supervisory Authority (Finma) and the government, who failed to take decisive action in response to mounting issues within the bank.

The Swiss government has committed to reforming banking regulations in response to the crisis, with recommendations for stricter capital requirements and enhanced regulatory powers for Finma.

Responsibility for the Downfall

While the authorities were found to have made mistakes, the ultimate responsibility for the bank's downfall was placed on its Board of Directors and Executive Board.

Criticisms of Regulatory Bodies

The PUK's investigation also criticized the actions of regulatory bodies, including Finma and the Swiss National Bank (SNB), for their lack of intervention.

Proposed Reforms

The report also highlighted communication failures among government officials and proposed reforms to prevent future crises, such as requiring a majority of the Board of Directors for major banks to have resided in Switzerland for at least ten years.

Broader Implications

The collapse of Credit Suisse has had broader implications for the Swiss financial ecosystem, leading to ongoing scrutiny and the need for stability and accountability in the banking sector.