The recent report from the Parliamentary Investigation Commission (PUK) has highlighted the failures of the Federal Council in addressing the Credit Suisse crisis. The report emphasizes the need for significant reforms in early crisis detection and risk management practices within Switzerland's financial oversight framework.
The investigation concluded that while the authorities' intervention in March 2023 was legally justified and prevented a global financial crisis, the effectiveness of the Financial Market Supervisory Authority (Finma) was limited. The report criticizes the Federal Council for its hesitance in implementing the Public Liquidity Backstop (PLB), suggesting that a more proactive approach could have mitigated the crisis earlier.
One of the key criticisms outlined in the report pertains to the communication failures within the Federal Council, particularly regarding the actions of former Finance Minister Ueli Maurer.
The report also calls for a reevaluation of the regulatory landscape surrounding major financial institutions in Switzerland, with a focus on UBS as the sole Globally Systemically Important Bank (G-SIB) in the country. The commission's recommendations aim to establish a more robust framework for early crisis detection and regulatory reforms to safeguard the stability of Switzerland's financial system.