Basel Committee on Banking Supervision

Basel Committee on Banking Supervision

Regulatory Consistency Assessment Programme (RCAP) Assessment of Basel III LCR regulations ? Switzerland

October 2017

This publication is available on the BIS website (). ? Bank for International Settlements 2017. All rights reserved. Brief excerpts may be reproduced or

translated provided the source is stated.

ISBN 978-92-9259-107-6 (online)

Contents

Preface ................................................................................................................................................................................................ 2

Executive summary ........................................................................................................................................................................... 4

Response from FINMA .................................................................................................................................................................... 5

1 Assessment context and main findings........................................................................................................................... 6 1.1 Context................................................................................................................................................................................ 6 1.2 Structure, enforceability and binding nature of prudential regulations ................................................... 6 1.3 Scope of the assessment ............................................................................................................................................. 7 1.4 Main findings.................................................................................................................................................................... 8

2 Detailed assessment findings............................................................................................................................................10 2.1 Scope of application and transitional arrangements .....................................................................................10 2.2 LCR .....................................................................................................................................................................................10 2.3 LCR disclosure requirements....................................................................................................................................14 2.4 Observations and other findings specific to the implementation practices in Switzerland............15

Annexes ..............................................................................................................................................................................................18 Annex 1: RCAP Assessment Team and Review Team .......................................................................................................18 Annex 2: List of LCR standards under the Basel framework used for the assessment ........................................19 Annex 3: Local regulations issued by FINMA for implementing Basel LCR standards ........................................23 Annex 4: Details of the RCAP assessment process ............................................................................................................24 Annex 5: List of rectifications by FINMA ................................................................................................................................25 Annex 6: Assessment of bindingness of regulatory documents ..................................................................................26 Annex 7: Key liquidity indicators of Swiss banking system ............................................................................................27 Annex 8: Materiality assessment ...............................................................................................................................................28 Annex 9: Switzerland implementation of the liquidity monitoring tools..................................................................29 Annex 9b: Switzerland's implementation of the monitoring tools for intraday liquidity management.......31 Annex 10: Switzerland's implementation of the Principles of sound liquidity risk management and supervision .......................................................................................................................................................................................... 33 Annex 11: Areas for further guidance from the Basel Committee...............................................................................34 Annex 12: List of issues for follow-up RCAP assessments ..............................................................................................35 Annex 13: Areas where Switzerland LCR rules are stricter than the Basel standards...........................................36 Annex 14: Implementation of LCR elements subject to prudential judgment or discretion in Switzerland ......................................................................................................................................................................................... 37

Regulatory Consistency Assessment Programme ? Switzerland

1

Glossary

ALA BIS C CHF D-SIB ECAI EGW ESG FAQ FINMA FINMASA GC G-SIB HLBA HQLA LC LCR LiqO MNC NC OSFI PIC RCAP SIG SFT SMI SNB

Advanced liquidity approach Bank for International Settlements Compliant (grade) Swiss franc Domestic systemically important bank External credit assessment institution Emissionszentrale f?r gemeinn?tzige Wohnbautr?ger Emissionszentrale Schweizer Gemeinden Frequently asked question Swiss Financial Market Supervisory Authority Financial Market Supervision Act General collateral Global systemically important bank Historic look-back approach High-quality liquid assets Largely compliant (grade) Liquidity Coverage Ratio Liquidity Ordinance Materially non-compliant (grade) Non-compliant (grade) Office of the Superintendent of Financial Institutions Canada Personal investment company Regulatory Consistency Assessment Programme Supervision and Implementation Group Securities financing transaction Swiss Market Index Swiss National Bank

Regulatory Consistency Assessment Programme ? Switzerland

1

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download