The report released by the Parliamentary Commission of Inquiry (PUK) on the Credit Suisse crisis highlights that the turmoil was largely self-inflicted. It emphasizes the need for improvements in banking regulation and supervision.
The report acknowledges that the Federal Council and other authorities successfully averted a global financial crisis in the spring of 2023. Finance Minister Karin Keller-Sutter expressed satisfaction with the report, emphasizing the potential damage that an uncontrolled collapse of Credit Suisse could have inflicted on the Swiss economy.
The PUK's analysis indicates that while there are areas for regulatory enhancement, the swift actions taken by the Federal Council played a crucial role in mitigating the crisis's impact. Keller-Sutter pointed out that the recommendations from the PUK are largely accepted by the Federal Council, particularly regarding the restructuring of crisis management organizations. However, the Federal Council has rejected calls to tighten capital and liquidity requirements, asserting that such responsibilities lie with the supervisory authority.
The PUK report has received a generally positive reception across political parties, with a consensus on the necessity of learning from the crisis. However, opinions diverge on the specific actions to be taken. The Center Party and the Social Democrats (SP) advocate for immediate reforms to strengthen the financial market supervisory authority, Finma, and enhance banking regulations. Conversely, the Swiss People's Party (SVP) and the Free Democratic Party (FDP) have taken a more critical stance towards Finma, accusing the authority of failing to utilize its regulatory powers effectively.
As discussions surrounding the PUK report are set to take place in Parliament during the spring, the Federal Council is also preparing to propose further banking regulation measures. Keller-Sutter emphasized the importance of proactive strategies to prevent future crises, stating that a repeat of the UBS-CS situation is not feasible. She noted that only a major foreign bank could potentially take over UBS, underscoring the unique challenges facing Switzerland's banking sector.
The Finance Minister reiterated the need for an internationally coordinated approach to regulatory development, especially in light of potential events in the United States that could have repercussions for Switzerland. The PUK report serves as a reminder of the lessons not fully learned from the 2008 financial crisis, particularly regarding the UBS bailout, which has contributed to the current vulnerabilities in the banking system.
Keller-Sutter's commitment to swift action reflects a broader recognition of the risks posed by financial markets and the banking sector. The PUK's call for decisive measures resonates with the urgent need to bolster regulatory frameworks and ensure that the lessons of the past are not forgotten. As the financial landscape continues to evolve, the focus remains on creating a resilient banking environment capable of withstanding future challenges.