Newsletter May 2010: Switzerland adopts tough liquidity regime

BERNE – Switzerland is introducing a tough new liquidity regime for its two largest, systemically important banks, broadly along the lines of the liquidity framework proposed last December by the Basel Committee. The core element of the new Swiss regime, which will come into force on June 30, is a “stringent stress scenario” defined by the Swiss Financial Market Supervisory Authority (FINMA) and the Swiss National Bank (SNB).