Swiss National Bank seeks banking regulation review after Credit Suisse crash
Swiss banking regulation and supervision must be reviewed following the collapse of Credit Suisse (CSGN.S), Swiss National Bank Chairman Thomas Jordan said on Friday, although he warned against “quick fixes.”
The central bank played a key role in the state-engineered rescue of Credit Suisse, making 250 billion francs of emergency liquidity available to prevent its collapse and ease its takeover by UBS (UBSG.S).
The provision of the emergency loans was secured using Swiss emergency law, a controversial measure which allowed the government to sidestep parliament.
“Banking regulation and supervision will have to be reviewed in light of recent events,” Jordan told the SNB’s shareholders at their annual meeting in Bern, referring to the Credit Suisse crisis.
“This will require in-depth analysis. Quick fixes must be avoided,” he added.
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