What are the new powers proposed for Finma?

The Swiss Government plans to give Finma the option of imposing fines and publicly disclosing non-compliant banks. These tools would serve to intervene in a more timely and comprehensive manner on banking irregularities, avoiding situations such as the one that led to the collapse of Credit Suisse.

When was the first federal law on banks in Switzerland born?

The Federal Act on Banks and Savings Banks came into force on 1 March 1935. It was quickly elaborated as a "daughter of necessity" following the global economic crisis of the 1930s, the collapse of the Banque de Genève in 1931 and the crisis of the Swiss People's Bank in 1933.

What role did the SNB play in the 1977 crisis?

On the night of 26 April 1977, the Swiss National Bank (SNB) announced that it would support Credit Suisse, together with SBS and UBS, with an amount of up to CHF 3 billion, if necessary, to stabilise the ailing institution.

Banking supervision in Switzerland: new rules after crises (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 4 August 2026

The Swiss Government is proposing new powers for Finma to impose fines and disclose defaulted banks after the collapse of Credit Suisse.

Context

In a nutshell

Government proposes to Finma powers for fines and publication of non-compliance
The banking law of 1 March 1935 was born out of the need for crisis
Historic 1965 scandal: CFB president dismissed for ties to Trujillo
In 1977 the SNB intervened to support Credit Suisse

Key facts

What: New banking supervisory skills
When: Current proposal (3 years after CS collapse)
Where: Switzerland (Federal Level)
Who: Federal Council, Finma, Parliament
Amount: 100 million francs (support from the Swiss People's Bank 1933)

The Federal Council is planning to significantly strengthen the banking supervisory authority. The aim is to equip Switzerland with control tools that other international financial centres already use, especially following the collapse of Credit Suisse (CS) three years ago. The proposal provides that the Federal Financial Market Supervisory Authority (Finma) can impose financial penalties and, just as importantly, make public the identities of banks that do not comply with the rules.

An evolution marked by crises

The history of Swiss banking regulation is not linear. Already in 1916 there was a draft federal law, but it remained unused until the crisis of the 1930s. The need to act became pressing after the failure of the Banque de Genève in 1931 and the crisis of the Swiss People's Bank, which in 1933 required intervention

Operational details

Analysis of the impact on financial stability

The introduction of financial penalties and transparency on defaults marks a paradigm shift for the Swiss banking ecosystem. To date, Finma's lack of direct sanctioning powers has limited its ability to take prompt action on irregularities. If such instruments had been available earlier, it would have been possible to shed more light on the issues that led to the collapse of Credit Suisse.

Comparison of old and new supervisory powers

To understand the qualitative leap, it is useful to analyze what concretely changes for financial institutions operating in Switzerland:

Opposition in Parliament reflects a historic resistance to state regulation, an issue that has divided the political world for decades. This conflict between the need for stability and the will to maintain a free market has led to contradictory results. For example, in May 1984, an initiative for greater regulation was rejected in a popular vote with 73% of 'no' votes.

# Emergency intervention scenarios

The story

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Key points

What changes for account holders and investors

Although the new rules primarily concern the relationship between authorities and institutions, the impact for those holding capital in Switzerland is significant in terms of security and transparency. Stricter supervision reduces the risk of sudden failures and increases confidence in fund management. For those operating in the financial sector or holding bank accounts, it is useful to monitor official communications from Finma, which will become the primary indicator of an institution's regulatory health.

Steps to monitor the security of your institution

For residents or those working in Switzerland who wish to evaluate the reliability of their bank, it is recommended to follow these steps:

1. Periodically consult Finma communications: with its new powers, the authority will make non-compliant banks known, providing an immediate warning signal. 2. Verify the solidity of own funds: as already provided by the 1935 law, liquidity and own funds remain the key parameters for creditor protection. 3. Analyze exposure to foreign risks: the history of the Trujillo funds teaches that unsecured loans to foreign companies can be a sign of instability.

Financial management tools

In a context of regulatory evolution, it is essential to maintain rigorous control over one's financial and tax planning. The stability of the banking system directly affects the management of savings and the choice of the safest accounts. For those wishing to optimize their financial position in Switzerland or compare costs related to banking and tax services, digital support tools can be used.

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Frequently Asked Questions

What are the new powers proposed for Finma?: The Swiss Government plans to give Finma the option of imposing fines and publicly disclosing non-compliant banks. These tools would serve to intervene in a more timely and comprehensive manner on banking irregularities, avoiding situations such as the one that led to the collapse of Credit Suisse.
When was the first federal law on banks in Switzerland born?: The Federal Act on Banks and Savings Banks came into force on 1 March 1935. It was quickly elaborated as a "daughter of necessity" following the global economic crisis of the 1930s, the collapse of the Banque de Genève in 1931 and the crisis of the Swiss People's Bank in 1933.
What role did the SNB play in the 1977 crisis?: On the night of 26 April 1977, the Swiss National Bank (SNB) announced that it would support Credit Suisse, together with SBS and UBS, with an amount of up to CHF 3 billion, if necessary, to stabilise the ailing institution.