The Swiss Financial Market Supervisory Authority (FINMA) issued a statement welcoming the Federal Council’s dispatch proposing revisions to the Swiss Banking Act and called for the package to be implemented in full as part of measures aimed at strengthening banking stability. The authority highlighted the importance of reinforcing statutory instruments that enable preventive supervision. The dispatch sets out intended amendments to Switzerland’s “too big to fail” framework for capital requirements, including ending “double leverage”, where foreign subsidiaries of systemically important banks are not fully backed with capital. FINMA noted that double leverage has been viewed internationally as a risk for over two decades and that its abolition has been recommended in Switzerland for a second time since 2012. Alongside capital measures, FINMA reiterated its support for expanded preventive powers, including an accountability regime, the authority to impose fines, a clearer legal basis to communicate publicly about concluded proceedings, and the ability to intervene at an early stage, referencing recommendations in both the Federal Council’s TBTF report and the Parliamentary Investigation Committee report. FINMA underscored that lawmakers will need to weigh shareholder interests against potential risks to taxpayers as the legislative process proceeds.
Swiss Financial Market Supervisory Authority (FINMA) 2026-04-22
Swiss Financial Market Supervisory Authority welcomes Federal Council Banking Act revision and urges full too big to fail reforms including abolition of double leverage
The Swiss Financial Market Supervisory Authority (FINMA) welcomed the Federal Council’s dispatch proposing revisions to the Swiss Banking Act and urged full implementation to strengthen banking stability and preventive supervision. The proposals include amendments to the “too big to fail” capital framework to end “double leverage” at systemically important banks and expanded preventive powers for FINMA, such as an accountability regime, fining powers, clearer communication rules on concluded proceedings, and earlier intervention tools. FINMA said lawmakers must balance shareholder interests against risks to taxpayers as the legislative process advances.