(MENAFN- Swissinfo) The forced sale of Credit Suisse to its banking rival UBS has created a headache for Switzerland.
This content was published on February 28, 2024 - 09:00 1 minute
When not covering fintech, cryptocurrencies, blockchain, banks and trade, swissinfo's business correspondent can be found playing cricket on various grounds in Switzerland - including the frozen lake of St Moritz.
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The emergency takeover exposed the failure of regulations to prevent an uncontrolled collapse of a major Swiss bank. It also created a monopolistic giant bank with a balance sheet twice the size of the Swiss economy.
SWI swissinfo asked three experts how Switzerland can create a regulatory safety net to shield the country from future problems.
The government and parliament are under pressure to deliver regulatory reforms that will ensure greater stability for the financial system.
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This content was published on Feb 28, 2024 Switzerland should not micro-manage banks with new regulations, argues the Swiss Business Federation.
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But Rudolf Minsch, chief economist of the Swiss Business Federation economiesuisse, warns lawmakers to resist the temptation to create new regulations to micro-manage banks or restrict other financial actors, such as insurance companies.
Centre Party politician Peter Hegglin is of the opinion that Switzerland's biggest banks must be tamed to prevent a potential catastrophe for the rest of the economy.
More Opinion More Unstable financial system creates more harm than good
This content was published on Feb 28, 2024 Switzerland's biggest banks need to be tamed with more potent regulation to prevent a potential catastrophic impact on the economy, says Centre Party parliamentarian Peter Hegglin.
Read more: Unstable financial system creates more harm than good
Switzerland has too small of an economy to cope with the collapse of a large bank, Hegglin argues.
Adriel Jost, a fellow at the Institute for Swiss Economic Policy, calls on banks to shoulder responsibility by changing the way they go about their business.
More Opinion More Banking regulation: it's up to the banks, not the state
This content was published on Feb 28, 2024 Large banks should take on the responsibility of ensuring financial stability in Switzerland far more than the regulator or lawmakers, argues economist Adriel Jost.
Read more: Banking regulation: it's up to the banks, not the state
The current trend of treating banks as if they are companies in any other sector fails to appreciate the unique complexities of the financial system, Jost says.
Articles in this story
What next for big banks in Switzerland? Unstable financial system creates more harm than good Banking regulation: it's up to the banks, not the state
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