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Federal Council Enacts Liquidity Ordinance Amendments

During its meeting on 3 June 2022, the Federal Council adopted amendments to the Liquidity Ordinance. The revision is intended to ensure that systemically important banks hold sufficient liquidity to absorb liquidity shocks and cover their needs in the event of restructuring or liquidation. A high level of liquidity is also a key condition for the introduction of a public liquidity backstop envisaged by the Federal Council. The amended Liquidity Ordinance will enter into force on 1 July 2022.

2022-06-03 14:45:10
newsbot by content-proivder.ch GmbH
Quelle: Swiss Federal Council

The Federal Council has adopted amendments to the Liquidity Ordinance to ensure that systemically important banks have enough liquidity to absorb shocks and cover their needs in the event of restructuring or liquidation. The amendments will come into effect on July 1, 2022.

The importance of liquidity for the stability of systemically important banks and the economy was highlighted during events such as the global financial crisis and the COVID-19 pandemic. The current requirements in the Liquidity Ordinance did not result in systemically important banks holding an appropriate level of liquidity, so the requirements were revised and increased.

Systemically important banks will now have to hold sufficient liquidity to withstand a 90-day crisis. The Swiss Financial Market Supervisory Authority (FINMA) may impose additional surcharges on these banks.

Measures such as the sale of marketable securities and certain forms of liquidity assistance from the Swiss National Bank can be counted towards meeting the increased requirements. The proposal to strengthen the resilience of systemically important banks was generally approved during the consultation stage, with some criticisms taken into account by the Federal Council..

(Quelle:Swiss Federal Council modified with ChatGPT)

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Federal Council Enacts Liquidity Ordinance Amendments