GENEVA (AP) — The rich Alpine nation is considering ways to tighten regulations after UBS made a hasty takeover of ailing rival Credit Suisse last year, partly to prevent a global banking meltdown. While considering the matter, the Swiss financial market authority is appointing a new chief executive.
The Swiss government on Wednesday selected Stefan Walter, a 59-year-old German who served as executive director of the European Central Bank for the past decade, to head the Swiss financial authority, known as FINMA.
The agency, along with government officials and bank executives, finalizes a mega-merger worth 3 billion Swiss francs (about $3.48 billion) after Credit Suisse clients rapidly withdrew their funds following years of scandal. played an important role in the above. Swiss authorities were concerned that the failure of such a large financial institution could further disrupt global financial markets, following the failures of two U.S. banks last year.
Credit Suisse's problems threaten to undermine Switzerland's position as a leader in financial markets, and the takeover leaves Switzerland with just one internationally important bank, UBS.
The FINMA report, published last month, reveals the lessons of the banking disaster, pinpoints liability for banks, empowers the Financial Services Authority to impose fines, imposes tougher rules on corporate governance, and more. We want a stronger regulatory toolbox. .
A parliamentary committee set up after the government-led merger is investigating the circumstances of the agreement. Additionally, Switzerland's executive branch, known as the Federal Council, released a report this spring on “too big to fail” rules that will inform parliamentary debate on whether and how to tighten banking regulation. It is expected that a book will be published.
Walter has been in the position since former FINMA CEO Urban Angheen resigned in September, citing the impact on his health from the “high level of persistent stress” of holding the position. He will take over from the director, who has served as interim director since stepping down.
Before Anghen, British-Swiss Mark Branson led the financial authority from 2014 to 2021.
FINMA Board Chair Marlene Amstad said that Walter's “knowledge in the area of large bank supervision and connections with international supervisors will be a great asset to FINMA's supervision of systemically important Swiss banks.” said.
Amstad told Swiss public broadcaster SRF on Saturday that FINMA is increasing its oversight of UBS, with around 60 staff now directly or indirectly responsible for supervising the combined bank. As of August, only 22 staff members were directly responsible for overseeing UBS.
Mr. Walter, who holds a master's degree in international banking from Columbia University in New York, is scheduled to start on April 1, the Swiss government said.
