The Swiss Bankers Association (SBA) has issued a sharp warning against the Federal Council’s newly proposed capital rules, arguing they will create significant competitive disadvantages for Switzerland’s financial centre. While the adjustments aim to strengthen stability, the SBA stresses that unilateral tightening risks isolating Switzerland internationally and raising costs for businesses and households
Stricter Rules on Foreign Holdings
At the heart of the criticism is the requirement that foreign holdings of systemically important banks must be fully backed by hard core capital. According to SBA President Marcel Rohner, this measure goes beyond Basel Standards and international practice, placing Swiss banks at a regulatory disadvantage compared to global competitors. The association warns that such rules could reduce credit supply, increase lending costs for SMEs, and undermine Switzerland’s attractiveness as a financial hub.
Ignored Warnings from Cantons and Industry
The SBA notes that feedback from the financial sector, the real economy, and 16 cantons was disregarded during the consultation process. These stakeholders had cautioned that the proposed tightening would harm competitiveness without delivering meaningful gains in stability.
Partial Improvements Welcomed
The association acknowledges some positive adjustments:
Banks may continue to count software and deferred tax assets toward Common Equity Tier 1 capital.
However, software must now be fully amortized within three years, a stricter requirement than international norms.
Most banks are exempt from further tightening, which the SBA views as a relief.
CEO Roman Studer emphasized that while exemptions are welcome, the stricter treatment of software valuation still goes beyond global standards.
AT1 Instruments and International Harmonization
The SBA supports the continued recognition of Additional Tier 1 (AT1) instruments, which remain globally accepted tools for absorbing losses in crises. The association calls for Switzerland to align with international harmonization rather than pursuing isolated measures.
Next Steps
The Federal Council plans to launch a consultation on draft legislation in summer 2026. The SBA urges Parliament to strike a balance between financial stability and competitiveness, warning that Switzerland must avoid “going it alone” in ways that damage its economy and taxpayers.
Source: www.swissbanking.ch