ZURICH (Reuters) – Swiss financial regulator FINMA has identified two of five Swiss systemically important banks as having inadequate recovery and resolution plans.
FINMA questioned the ability of Zuercher Kantonalbank (ZKB) and PostFinance to continue functioning when experiencing a crisis. “ZKB has yet to fully build up the necessary capital,” he said, adding that “PostFinance must reorganize its emergency plans.”
The assessment published by FINMA assesses the emergency plans of major Swiss banks at the end of 2022. Therefore, the merger of Credit Suisse and UBS is not considered.
Financial regulators are positive about the crisis plan developed by Credit Suisse last year, and the bank, which had to be bailed out by UBS last month in a takeover designed by Swiss authorities, is ready to go. He said he had an emergency plan.
Urban Angarn, CEO of FINMA, said: “It’s clear that there are important lessons to be learned from the Credit Suisse crisis to prepare for future crises.
In the wake of the Credit Suisse takeover, regulators said they moved quickly to dodge responsibility for the failure of the country’s second-largest bank, demanding more powers to hold lenders accountable instead.
(Reporting by Noele Illien, Editing by Muralikumar Anantharaman)
