"Too big to fail" regulation – Tougher bonus rules – Federal Council wants to rein in bank executives

• The Federal Council wants to hold bank executives more accountable and avoid risks caused by high bonuses.
• Banks should also be better prepared for crises. To this end, the Federal Council is sending corresponding proposals for consultation.
• Finance Minister Karin Keller-Sutter presented the proposals at a press conference.
• The trigger is the collapse of Credit Suisse: The Federal Council wants better instruments to deal with distressed banks.

The goal of the tightened regulations is to close gaps in the 'too big to fail' regulation, as the Federal Council writes. It also wants to reduce the risk that taxpayers, the economy, and the state will again have to bear financial risks like after the CS debacle. The Federal Council is proposing measures for this that it had already announced in June 2025.

Among other things, it wants to anchor an accountability regime in the Banking Act for banks with more than 250 employees. It should be determined and made clear who is responsible for which decisions. This is intended to improve corporate culture and the culture of dealing with risks.

Start of image gallery

Skip image gallery

• Image 1 of 2. Finance Minister Karin Keller-Sutter provided information at a press conference. Image source: KEYSTONE/Peter Schneider.

  

• Image 2 of 2. It is not the first time that Swiss politics has examined the banking system and in particular UBS. Image source: KEYSTONE/Gaetan Bally.

End of image gallery

Back to the beginning of the image gallery.

Bonus incentives for inappropriately risky behavior at banks should no longer exist, and a multi-year blocking period should therefore be introduced for the payout of a portion of variable compensation to top executives and very highly paid employees of all banks. Bonuses should also be able to be clawed back if necessary.

Finma should be able to impose fines

The Swiss Financial Market Supervisory Authority (Finma) should receive additional powers. Early interventions should help to protect the interests of bank customers. Its supervisory instruments should now include fines for banks. These should amount to up to ten percent of a year's operating profit.

According to the Federal Council's wishes, stabilization and resolution plans for systemically important banks should be increased and more precisely defined. Banks should also receive expanded access to liquid funds from the National Bank.

In force at the earliest in 2029

In the Liquidity Ordinance, the Federal Council intends to regulate, among other things, quantitative minimum requirements for systemically important and medium-sized banks regarding secured liquidity procurement from the National Bank. Smaller banks are not affected by this. The new ordinance provisions are only to come into force once the legislative amendments have been decided and have entered into force.

The consultation on the innovations in the Banking Act and the Liquidity Ordinance will last until November 19. The Federal Council intends to submit the dispatch on the Banking Act to Parliament in 2027. The new requirements could come into force at the beginning of 2029 at the earliest.