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Finma’s Call for Stronger Standards and Greater Powers

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Finma believes that it should have more influence over the governance of supervised institutions, including the ability to impose fines and publish enforcement proceedings. This will enable them to take prompt action and contribute to the stability of the financial system.

Furthermore, Finma has emphasized the importance of introducing stricter regulation standards for banks deemed “too big to fail.” These banks pose a significant risk to the overall health of the financial market, and Finma aims to ensure that they are subject to enhanced oversight and measures to minimize potential systemic risks.

To rectify these issues, Finma implemented a series of far-reaching and invasive measures. From 2018 to 2022, 108 on-site supervisory reviews were conducted at Credit Suisse, resulting in the identification of 382 areas requiring attention—of which 113 were categorized as high or critical priority. These numbers highlight the exhaustive efforts made by Finma to address key concerns and utilize its legal powers effectively.

In conclusion, Finma’s review of the Credit Suisse crisis has led to a call for stricter standards, greater powers, and improved regulations to strengthen the stability of the financial sector. It is crucial that proactive measures are taken to prevent future crises and safeguard the trust of investors and the public.

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