Federal Council adopts revision of Capital Adequacy Ordinance

November 22, 2017

 During its meeting on 22 November 2017, the Federal Council adopted a revision of the Capital Adequacy Ordinance (CAO). It concerns the introduction of a Leverage Ratio (LR), as well as new risk diversification provisions. Two additions to the International Standards of the Basel Committee on banking Supervision (Basel III) will thereby be implemented.

The Capital Ordinance report can be found here, and the explanations regarding the amendments can be found here.