Depositor protection and bank insolvency
The authorisation to conduct business of banks, private bankers and savings banks, as well as regulations governing their business activities, are set out in the Banking Act (BankA). As part of a partial revision of the BankA, revised rules on bank restructuring, a strengthening of deposit insurance and additional provisions on the separate management of intermediated securities came into force in 2023.
The Banking Act only regulates the main features of the restructuring procedure for banks; the details were set out in the Bank Insolvency Ordinance of the Swiss Financial Market Supervisory Authority FINMA. In order to strengthen legal certainty, the Federal Council's revision enshrined in law those instruments that, like capital measures (e.g. a bail-in), interfere with the rights of the bank's owners and creditors.
Furthermore, to better protect depositors, banks will no longer have to secure half of their contribution obligations to the deposit insurance scheme in the form of additional liquidity, but rather by depositing securities or Swiss francs in cash with a custodian. The deadline for paying out the funds from the deposit insurance scheme has also been shortened from 20 to seven days.
Finally, the Federal Council decided to amend the Intermediated Securities Act. Custodians of intermediated securities were obliged to keep their own holdings and those of their customers separate.
The Federal Assembly passed the bill in the final votes on 17 December 2021. The revised Banking Act and its implementing provisions came into force on 1 January 2023.
Media
Federal Council brings amendments to Banking Act and Banking Ordinance into force with effect from 1 January 2023
23.11.2022
Federal Council adopts dispatch on partial revision of Banking Act
19.06.2020