Switzerland : Financial Sector Assessment Program-Detailed Assessment of Observance—Basel Core Principles for Effective Banking Supervision.

Format:

Book

Government document

Author/Creator:

International Monetary Fund. Monetary and Capital Markets Department.

Series:

IMF Staff Country Reports; Country Report ; No. 2025/295

IMF Staff Country Reports

Language:

English

Physical Description:

1 online resource (284 pages)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2025.

Summary:

This paper presents Detailed Assessment of Observance report for Basel Core Principles for Effective Banking Supervision in Switzerland. The assessment of Switzerland's banking supervisory framework reveals significant legal gaps that hinder the Swiss Financial Market Supervisory Authority's (FINMA) ability to deliver robust, effective oversight. A core challenge is the limitation in FINMA's early intervention capabilities and the enforceability of supervisory actions, which are fundamental to international standards. Although FINMA possesses formal powers to act against individuals, the high evidentiary threshold for attributing individual responsibility restricts their practical use. To improve compliance, supervisors must communicate explicit expectations through detailed guidelines and regulations, addressing the current "silent approach" to risk articulation. Critically, the current system relies heavily on regulatory audits, which are not a substitute for direct supervisory onsite work. The mission strongly recommends granting FINMA the power to mandate and direct the scope of regulatory audit work to enhance supervisory effectiveness.

Notes:

Description based on print version record.

ISBN:

9798229030854