Issue notes

Stocktaking and Outlook on Selected Aspects of the Global and European Prudential Framework

The global financial system and its regulatory landscape have changed dramatically since the 2008 financial crisis. In response, central banks, regulators and policymakers introduced new requirements aiming to increase the resilience and stability of the financial system. These efforts made the banking sector well resistant to the current pandemic. However, the current situation reveals some structural shortfalls in the prudential regulatory framework.

The Swiss Finance Council Issue Note makes some recommendations on how to address these shortfalls and how to further improve the global regulatory standards. Completing the Banking Union, avoiding market fragmentation and national ring-fencing are core elements the EU should swiftly address. At global level, a discussion has started about the lessons learnt from the COVID-19 pandemic in relation to procyclicality as well as the usability of capital buffers. The Issue Note makes some suggestions in this regard. Finally, we comment on some of the latest developments regarding the prudential treatment of third country banks in the EU.

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The Swiss Approach to Sustainable Finance

The Swiss approach to sustainable finance consists of a mix of legal, regulatory, and market-based measures reflecting the government’s ambition to strengthen Switzerland’s position as a global hub for sustainable financial services. Additionally, there is a legal obligation to ensure the financial sector contributes to low-emission development resilient to climate change, as mandated by the recently adopted Climate and Innovation Act.

EU Market Access: A Swiss Perspective

The European Union (EU) and Switzerland have a long-standing relationship founded on shared values and goals of peace and economic prosperity. The economic interdependence between the EU and Switzerland is strong, with Switzerland being the EU's third most important trading partner for services, while the EU is the most important trading partner for Switzerland.

Digital Finance Strategy for the EU: A Third Country Perspective

For a successful European Digital Finance Strategy, joint effort is needed to foster regulatory dialogue and cooperation, together with the private sector, with other global and innovative financial centres, like Switzerland, with a view to (...)

Sustainable finance : towards a carbon neutral european economy

Accelerated by the Covid-19 pandemic and surge in investor demand, sustainable investing is set to become mainstream. Financial institutions grasp new opportunities by advising private investors in anticipation of the generational wealth shift and accompanying corporates’ transition towards more sustainable business models.