Priya Patel
In a move that highlights the need for banking regulations in Switzerland, the country’s financial markets authority, FINMA, has appointed a new CEO. Stefan Walter, a former director-general of the European Central Bank, will take over the role from an interim chief. The appointment comes after UBS acquired Credit Suisse last year to prevent a global banking crisis. Swiss authorities are now looking to strengthen their regulatory toolbox and impose tougher rules on corporate governance. The appointment of Walter, with his knowledge of large bank supervision and international supervisory authorities, is seen as an asset in the supervision of Swiss banks.
Key points:
- Switzerland’s financial markets authority, FINMA, has appointed Stefan Walter as its new CEO.
- The appointment comes after UBS acquired Credit Suisse last year.
- Swiss authorities are looking to strengthen banking regulations and impose tougher rules on corporate governance.
- Walter’s knowledge of large bank supervision and international supervisory authorities is seen as an asset in the supervision of Swiss banks.
Switzerland’s financial markets authority, FINMA, has appointed a new chief executive as the country looks at ways to strengthen banking regulations following the crisis at Credit Suisse. Stefan Walter, a former director-general of the European Central Bank, will take over the role, replacing an interim chief. The appointment comes after UBS acquired Credit Suisse in a 3 billion Swiss francs ($3.48 billion) takeover last year, partly to prevent a global banking meltdown. The collapse of such a major lending institution was feared to further disrupt global financial markets. The Swiss government is now focused on implementing stronger regulations and has called for a stronger regulatory toolbox, pinpointing responsibilities with banks, granting the financial agency the power to impose fines, and imposing tougher rules on corporate governance.
A FINMA report issued last month outlined the lessons learned from the crisis and emphasized the need for these regulatory changes. The report called for a stronger regulatory toolbox to prevent future banking catastrophes and restore trust in Switzerland’s financial markets. Additionally, a parliamentary panel was established to investigate the origins of the UBS-Credit Suisse merger, and the Federal Council is expected to issue a report on “too big to fail” rules that will inform further debates on banking regulations.
Stefan Walter’s appointment as CEO of FINMA is seen as a significant move in strengthening banking supervision in Switzerland. Walter’s extensive experience in large bank supervision and his links to international supervisory authorities make him well-suited for the role. As FINMA increases its scrutiny of UBS, Walter’s knowledge and expertise will be valuable in the supervision of the country’s systemically important Swiss banks. The appointment of a new CEO signals Switzerland’s commitment to improving regulation and preventing future banking crises.
