Swiss National Bank Welcomes Full Capital Backing of Banks' Foreign Participations
Summary
The Swiss National Bank issued a press release on 22 April 2026 welcoming measures announced by the Federal Council regarding banking regulation, specifically the full backing of a parent bank's foreign participations with Common Equity Tier 1 (CET1) capital. The SNB stated that this measure is proportionate and resolves a significant weakness in existing regulations exposed by the Credit Suisse crisis. The SNB also indicated that additional liquidity measures are under consideration to strengthen 'too big to fail' regulations.
“A key element of the proposed measures is the full backing of a parent bank's foreign participations with Common Equity Tier 1 (CET1) capital.”
Swiss banks with foreign participations should track implementing legislation for the full CET1 backing requirement, as the SNB's public endorsement signals regulatory expectations for complete capital coverage of international operations.
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GovPing monitors SNB Switzerland Press Releases for new banking & finance regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 3 changes logged to date.
What changed
The SNB issued a press release welcoming the Federal Council's announced measures on banking regulation, with a key element being the full backing of a parent bank's foreign participations with CET1 capital. The SNB stated that full capital backing ensures the parent bank's capital position in Switzerland is not negatively impacted by losses on foreign participations, enabling better crisis stabilization measures. Additional liquidity measures remain to be decided by the Federal Council.
For Swiss banks with foreign participations, this signals regulatory expectations for complete CET1 capital backing of international subsidiaries and branches. Banks should monitor for implementing legislation and assess how these capital requirements may affect their capital planning and structural organization.
Archived snapshot
Apr 27, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Swiss National Bank welcomes full capital backing of banks' foreign participations
22 April 2026 The Swiss National Bank welcomes the measures in the area of banking regulation announced by the Federal Council on 22 April 2026. The planned measures are crucial for resolving regulatory weaknesses highlighted by the crisis at Credit Suisse. They are an important step towards strengthening the stability of the Swiss financial system.
A key element of the proposed measures is the full backing of a parent bank's foreign participations with Common Equity Tier 1 (CET1) capital. This measure is proportionate and specifically resolves a significant weakness in the existing regulations. Full capital backing ensures that the capital situation of the parent bank in Switzerland is not negatively impacted by losses on foreign participations. This means that measures to stabilise the bank can be better implemented in the event of a crisis.
Another key element of future adjustment to banking regulations will be measures in the area of liquidity, yet to be decided by the Federal Council. In the SNB's view, these measures are essential for strengthening the 'too big to fail' regulations.
Further information is available on the SNB website.
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Swiss National Bank welcomes full capital backing of banks' foreign participations
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