The Swiss Financial Market Supervisory Authority FINMA has published the revised circular on credit risks and disclosure for banks. The regulations on credit risk capital requirements for banks have thus been aligned with enhanced international standards. Another change has been to account for the reinforced rules on Swiss “too big to fail” regulations for systemically important banks in the disclosure requirements.
The international Basel III banking standards includes adjusted regulations on credit risk capital requirements for derivatives, fund investments and securitisations for banks. The Federal Council enacted their implementation by amending the Capital Adequacy Ordinance. FINMA has now issued the associated implementing provisions in a new circular 2017/7 “Credit risks – banks”. The circular comes into force on 1st January 2017.
The enhanced Swiss “too big to fail” regulations, which came into force on 1 July 2016, have resulted in adjustments being made to the corresponding rules set out in Circular 2016/1 “Disclosure – banks”. The revised version comes into force on 1 January 2017 and the revised disclosure requirements apply to the data reported as of 31 December 2016.
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