Finance

Swiss Stop Short of Giving Regulator Power to Fine Banks

  • Finance Minister had said she was in favor of the measure
  • Swiss traditionally have consensual approach to bank oversight
Lock
This article is for subscribers only.

The Swiss government stopped short of offering the country’s banking watchdog the power to fine lenders, despite widespread support for the measure — including from the finance minister.

After the near-collapse of Credit Suisse over a year ago and its takeover by UBS Group AG, Switzerland is grappling with how to handle an outsized financial sector dominated by a behemoth bank that’s more than twice the size of its economy. Empowering Finma to impose levies had been backed by Finance Minister Karin Keller-Sutter earlier this year, as well as by a government-appointed expert panel and by the regulator itselfBloomberg Terminal.