Switzerland: Financial Sector Stability Assessment
IMF Staff Country Reports, May 28, 2014
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- Canonical URL
- Switzerland: Financial Sector Stability Assessment
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Bibliographic details
- Published: May 28, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498340809.002
Key findings
- Stress tests indicate that the Swiss banks are robust against even severe shocks.
- Banks have increased their capital.
- The two global banks have achieved substantial deleveraging.
- Swiss Financial Market Supervisory Authority (FINMA) has focused on significantly improving the quality of its supervision.
- Real estate bubbles appear to be emerging.
- With monetary instruments not available, macroprudential instruments are being introduced, but so far are limited and untested.
- Interest rates are negative at some maturities, threatening the business models of life insurance and pension companies.
Financial sector resilience and stress testing
- Stress tests: Swiss banks show robustness even under severe shocks (statement preserved verbatim).
- Capital position: Banks have increased their capital (statement preserved verbatim).
- Deleveraging: The two global banks have achieved substantial deleveraging (statement preserved verbatim).
Supervision and regulatory actions
- FINMA focus: Significant efforts to improve the quality of supervision (statement preserved verbatim).
- Macroprudential policy: Introduced because monetary instruments are not available; currently limited and untested (statement preserved verbatim).
Real estate risks
- Real estate: Bubbles appear to be emerging (statement preserved verbatim).
- Policy implication: Emergent real estate bubbles increase reliance on macroprudential tools in the absence of monetary policy options.
Insurance and pension sector risks
- Interest rates: Negative at some maturities.
- Impact: Negative interest rates threaten the business models of life insurance and pension companies (statement preserved verbatim).
Subject tags and keywords (as listed)
- Subject: Banking, Commercial banks, Financial institutions, Financial sector policy and analysis, Insurance, Insurance companies, Mortgages, Stress testing, Systemic risk
- Keywords: bank, bank governance, bank intervention, banking sector, bridge bank power, cantonal bank, capital, Commercial banks, CR, exchange rate, FINMA, Global, Insurance, Insurance companies, interest rate, ISCR, securities activity, senior debt, Stress testing, Switzerland, Systemic risk, TBTF bank, wealth management bank
Switzerland: Financial Sector Stability Assessment, May 28, 2014
Content in this bundle
- Switzerland: Financial Sector Stability Assessment; IMF Country Report 14/143; April 16, 2014