Problems Of Some US Banks Pose No Direct Risks To Swiss Markets - Swiss National Bank

Muhammad Irfan Published March 16, 2023 | 06:24 PM

The Swiss National Bank (SNB) and the country's Financial Market Supervisory Authority (FINMA) see no signs of "contagion" of Swiss financial institutions due to turmoil in the banking sector in the United States, the SNB said in a statement on Wednesday

ZURICH (UrduPoint News / Sputnik - 16th March, 2023) The Swiss National Bank (SNB) and the country's Financial Market Supervisory Authority (FINMA) see no signs of "contagion" of Swiss financial institutions due to turmoil in the banking sector in the United States, the SNB said in a statement on Wednesday.

"The Swiss National Bank SNB and the Swiss Financial Market Supervisory Authority FINMA assert that the problems of certain banks in the USA do not pose a direct risk of contagion for the Swiss financial markets," the statement says.

Regulation in Switzerland requires all banks to maintain capital and liquidity reserves that meet or exceed the minimum requirements of Basel standards, it explained.

"Furthermore, systemically important banks have to meet higher capital and liquidity requirements.

This allows negative effects of major crises and shocks to be absorbed," the central bank added.

Credit Suisse's capitalization and debt have been particularly affected by market reactions recently, it noted.

"FINMA is in very close contact with the bank and has access to all information relevant to supervisory law. Against this background, FINMA confirms that Credit Suisse meets the higher capital and liquidity requirements applicable to systemically important banks. In addition, the SNB will provide liquidity to the globally active bank if necessary. FINMA and the SNB are following developments very closely and are in close contact with the Federal Department of Finance to ensure financial stability," the statement says.