Switzerland Launches Consultation on Tougher Bank Regulations

09:48 AM EDT, 08/12/2026 (MT Newswires) -- The Swiss Federal Council on Wednesday kicked off a public consultation on tougher banking regulations, including increased requirements for systemically important banks such as UBS Group (UBSG.SW). As part of the proposals, banks with at least 250 employees must define and assign the responsibilities of senior management. As for bonuses, variable remuneration for senior management must be partially deferred and tied to future performance and risk developments. The Swiss Financial Market Supervisory Authority, or FINMA, would also gain stronger supervisory powers, with the proposals allowing the regulator to intervene earlier and impose fines for noncompliance or late implementation of orders. The government also proposed to expand lenders' access to liquidity from the Swiss National Bank (SNBN.SW). In response to the consultation drafts, FINMA recommended the implementation of the proposed measures as a comprehensive package and welcomed the proposal to expand its supervisory tools. The SNB also welcomed the planned measures, saying they are "crucial for resolving regulatory weaknesses highlighted" by the collapse of Credit Suisse, which UBS took over in 2023. The consultations will last until Nov. 19.