Consultation paper released by the Swiss Federal Department of Finance
The Swiss Federal Department of Finance issued its proposal for an amendment to the Swiss “Too Big to Fail” (TBTF) regime, including the new total-loss-absorbing capacity (TLAC) requirements, for consultation. These detailed requirements confirm certain proposals in the TBTF legislation review that was announced by the Swiss Federal Council on October 21, 2015 and provide additional clarity around the planned changes to the regime.
Credit Suisse welcomes the proposals for the grandfathering of existing capital instruments. We also take note of the changes to the Swiss TBTF regime discussed in the Brunetti Commission and the formalization of TLAC requirements to implement the Financial Stability Board’s TLAC standard. During the consultation period, Credit Suisse will evaluate the proposals against these standards and comment on additional elements in the paper that could present market challenges to achieve a viable and robust Swiss TBTF/TLAC regime. We will continue to execute our funding strategy as previously communicated to the market.