Here’s the article in markdown format:

Switzerland Accelerates Banking Reform After Credit Suisse Collapse

Zurich - Switzerland is accelerating efforts to reform its banking regulations, a year after the collapse of Credit Suisse, and handing more power to those who will enforce them. The government is set to unveil long-awaited proposals for legislation in the coming days that are likely to touch on all main pillars of bank oversight.

Strengthening Finma

The reforms aim to strengthen Finma, Switzerland’s banking watchdog, which was unable to prevent years of bad management at Credit Suisse, threatening the country’s reputation for financial stability. The new chief executive of Finma, Stefan Walter, a veteran European bank supervisor with over 10 years of experience, is expected to play a key role in implementing the reforms.

Government Support

The government, including the finance ministry and the Swiss National Bank, are all broadly aligned on the need for expanded regulatory powers. Even UBS Group AG, Switzerland’s sole remaining globally-systemic bank, has signaled support for major parts of the reform agenda.

Key Reforms

• Strengthening Finma’s ability to fine banks
• Introducing a senior managers regime, making individuals directly responsible for their decisions
• Shifting the culture of risk-taking among Swiss bankers by requiring more transparency and accountability
• Giving Finma more power over bonuses, currently only allowing the regulator to issue guidance on how much bankers should be paid

UBS Under Scrutiny

UBS will be under even closer scrutiny as a result of its increased size and systemic importance. The bank is already facing higher capital and liquidity requirements, and Finma has boosted the size of its team working with UBS and plans two stress tests on its balance sheet this year.

Background

The reforms are seen as a response to the collapse of Credit Suisse, which was caused by years of bad management and lack of oversight. The incident highlighted weaknesses in Switzerland’s banking regulations and led to calls for reform.

Debate

While some argue that the reforms are necessary to maintain Switzerland’s reputation for financial stability, others believe that the existing regulatory framework is sufficient and that the country should not deviate from global standards. The debate highlights the complex issue of bank regulation and the need for a balanced approach that balances the needs of banks with the interests of investors and depositors.

Source

Bloomberg News Agency