Swiss financial regulator orders UBS to finalize crisis plan



10/16/2024 5:03 AM


The Swiss financial regulator has mandated UBS to revise its contingency plan (living will) due to the increased risk from acquiring Credit Suisse last year.



Ank Kumar
Finma has halted UBS's annual strategy approval and advised the bank to enhance its current action plan.

In a statement, it was mentioned that more choices are necessary to enhance the crisis preparation and exit plan for systemically important banks, taking into account the lessons learned from the Credit Suisse case.

UBS is still carrying out a strategy to merge with its previous competitor Credit Suisse, which was acquired in 2023.

Finma mandates that big banks must provide their "wills" detailing a strategy to safely shut down operations in case of unforeseen issues, without causing a crisis in the market or needing help from the government, on an annual basis.

Finma stated that UBS needs to expand its strategy to address insolvency risk.

source: ft.com


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