The International regulatory framework for banks (Basel 3) aims to strengthen the regulation, supervision and risk management of the banking sector. The Capital Adequacy Ordinance (CAO) and FINMA circulars define the requirements in Switzerland.
Considering the fact that Switzerland was mostly (some transitional rules apply) Basel 3 compliant since 2013 with the modification of the capital adequacy ordinance, no major changes need to be made in the capital adequacy ordinance and related FINMA circulars. You will find below an overview of the proposed revised FINMA circulars:
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- 7 Enactment / transitional period 01/18-12/19
- 8 Application of the rule of law 01/20-
We consider the currently ongoing debate around risk sensitivity, comparability and simplicity of risk capital models (parts of which will result in Basel 4) an important one which will no doubt have significant implications for the banking industry, but mainly for the large banks and systemically important banks.
- Capital Planning
- International regulatory framework for banks (Basel 3)
- FINMA Circulars
- Capital Adequacy Ordinance