Swiss banks face tighter oversight as Finma's powers are expanded

The Swiss government is reviewing a third legislative initiative designed to reinforce the stability of its financial hub. The draft focuses on corporate governance reforms for banks, expanded monitoring instruments for the Federal Financial Market Supervisory Authority (Finma), and new crisis-avoidance mechanisms. Central to the proposal is a significant increase in Finma's intervention powers, especially over systemically important banks like UBS.

The measure follows earlier efforts to raise capital requirements for these institutions. Public commentary is being gathered as the consultation proceeds, reflecting the importance of the regulator's enhanced role in maintaining market confidence.