Switzerland SECO Labor News

Federal Council Adopts Too-Big-To-Fail Regulations Requiring Full CET1 Backing for Foreign Subsidiaries

On 22 April 2026, the Swiss Federal Council adopted a dispatch revising the Banking Act and amended the Capital Adequacy Ordinance (CAO), targeting a gap in the too-big-to-fail regime exposed by the Credit Suisse crisis in 2023. Systemically important banks will be required to fully back the carrying value of their participations in foreign subsidiaries with CET1 capital — previously only half could be financed with debt — eliminating the automatic reduction of parent bank capital ratios from the first franc of any valuation loss. The CAO amendments establish a maximum three-year amortisation period for software capital treatment, aligned with EU regulations, effective 1 January 2027. Parliament will debate the Banking Act dispatch from summer 2026, with a proposed seven-year transition period. UBS, the only currently affected institution, would require approximately USD 20 billion in additional CET1 capital under the new requirements.

Federal Council Approves Agreement on Cantons' Involvement in Switzerland-EU Bilaterals III

The Swiss Federal Council approved an agreement between the federal government and the cantons on 22 April 2026 governing canton involvement in the Switzerland-EU Bilaterals III package. The agreement grants cantons participation rights in decision-shaping procedures and consultation on dispute settlement when their competences or essential interests are affected. Cantons will also be represented on relevant bodies including the selection committee for the Competition Commission state aid monitoring chamber, joint committees, and high-level EU dialogue forums. The agreement is conditional: it will only be signed after parliamentary deliberations on the package are concluded and remains subject to potential renegotiation if Parliament substantially amends the relevant legal bases.

Switzerland Attends UNECE Regional Forum on Sustainable Development in Geneva

Switzerland participated in the UNECE Regional Forum on Sustainable Development held on 21-22 April 2026 in Geneva, led by Markus Reubi, Federal Council delegate for the 2030 Agenda. The forum focused on SDG 6 (clean water and sanitation), SDG 7 (affordable and clean energy), SDG 9 (industry and innovation), SDG 11 (sustainable cities), and SDG 17 (partnerships). Swiss cities Geneva, Bern, and Basel, along with canton Aargau, presented their first Voluntary Local Reviews, showcasing local implementation of the 2030 Agenda. The forum serves as preparation for the High-level Political Forum in New York in July 2026.