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Written by Noel Illian
BERN (Reuters) – Swiss financial regulator FINMA said on Wednesday it will carry out 40 reviews and two stress tests on UBS this year following the bank’s acquisition of rival Credit Suisse in 2023. The company announced that it was planning to implement the following measures, raising concerns that the company was “too big to fail.” lender.
FINMA unveiled plans to regulate the country’s last remaining global systemic banks in its 2023 annual report, as the regulator doubled down on calls for expanded powers. “In addition to 40 on-site supervisory reviews at UBS in Switzerland and abroad, two detailed stress tests are planned this year,” said Thomas Hirschi, head of banking at FINMA. The regulator said its activities focused on risks such as operational stability associated with UBS’s merger with former rival Credit Suisse. FINMA said it was also focusing on the combined bank’s capital and liquidity plans, and that post-merger UBS’s recovery and emergency plans would be under rigorous review.
The regulator has come under fire for its oversight of Credit Suisse, but ultimately defended its role in the meltdown that triggered the largest bank bailout since the 2008-2009 global financial crisis. I’ve done it.
In its assessment of this sector, FINMA identified a number of serious deficiencies, particularly in the areas of money laundering, mortgage lending and cyber risk. We called on the banks involved to rectify these deficiencies without delay.
The Swiss National Bank on Tuesday called for a review of bank capital rules, saying Switzerland needs rules to recognize that UBS has become a more systemically important bank after its takeover of Credit Suisse.
The Swiss central bank said banks needed to strengthen their financial foundations to avoid future crises. The central bank also said it was important to have a wide range of options for resolving systemically important banks.
(Reporting by Noel Irian; Editing by Rachel More and Dave Graham)
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