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Swiss central bank urges review of 'too big to fail' bank safeguards after Credit Suisse debacle
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Swiss National Bank's (SNB) Chairman of the Governing Board Thomas Jordan gestures during a media briefing at the Swiss National Bank in Zurich, Switzerland, on Thursday, June 22, 2023. Switzerland's central bank raised its key interest rate Thursday as it seeks to combat inflation and said “it cannot be ruled out” that more hikes will be necessary. - photo by Michael Buholzer/Keystone via AP
FRANKFURT, Germany (AP) — Switzerland's central bank said the government and regulators should carry out an in-depth review of rules aimed at preventing disastrous bank collapses, saying key guardrails failed to prevent Credit Suisse from needing to be rescued by Swiss competitor UBS. The Swiss National Bank scrutinized several of the safeguards imposed in the wake of the 2008-2009 global financial crisis that were aimed at preventing a repeat. The central bank concluded that several “too big to fail” rules designed to avoid the collapse of a major global bank were inadequate and may even have delayed action to ward off disaster.