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Book Cover
E-book
Author Enoch, Charles.

Title Switzerland : financial sector stability assessment
Published Washington, D.C. : International Monetary Fund, ©2014

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Description 1 online resource (52 pages) : color illustrations
Series IMF country report ; no. 14/143
IMF country report ; no. 14/143.
Contents Cover; CONTENTS; GLOSSARY; EXECUTIVE SUMMARY; TABLES; 1. Key Recommendations; STRUCTURE AND RECENT PERFORMANCE OF THE MACROECONOMY AND FINANCIAL SYSTEM; A. Financial Structure, Macrofinancial Developments, and Risks; FIGURES; 1. Total Mortgages; 2. Real Residential Real Estate Prices; B. Financial Sector Structure; 3. The Swiss TBTF Capital Regime; 4. Risk-Weighted Assets/Total Assets; C. Cantonal, Raiffeisen, and Private Banks; 5. Market Shares in Domestic Mortgage Loans; FINANCIAL SECTOR RESILIENCE; A. Banking Sector Stress Test; 6. Global Top 20 Banks by Assets Under Management
2. Macroeconomic Scenarios for the Stress Tests of the Banking SectorB. Insurance Sector Stress Test; 7. Capital Measures of Large Banks; 8. Banking Sector Stress Test Results-Large Banks CET1 Ratio; SYSTEMIC RISK SOURCES AND MITIGATION; A. Contagion and Systemic Risk Sources; 9. Marginal Contribution to Systemic Losses of Swiss Financial Institutions; 10. Switzerland: Contagion Risk Analysis of Swiss and Global G-SIFIs; 11. Swiss Financial-Sovereign Contagion; B. Macroprudential Policy Framework; FINANCIAL SECTOR OVERSIGHT; A. Banking; B. Insurance
3. Insurance Sector Premiums and Assets, 2008-2012C. Securities; 4. International Participation of the Insurance Groups, 2012; D. Financial Market Infrastructures; 12. Landscape of Systemically Important FMIs in Switzerland; 13. Simplified Legal Structure SIX Group AG; E. Financial Safety Nets, Crisis Management, and Resolution Framework; F. Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT); 5. Deposit Measures Adopted During the Global Financial Crisis; APPENDICES; I. 2007 FSAP Findings and Key Recommendations; APPENDIX TABLES
6. Previous FSAP Findings and Key Recommendations-BCP7. Previous FSAP Findings and Key Recommendations-IOSCO; 8. Previous FSAP Findings and Key Recommendations-IAIS; 9. Previous FSAP Findings and Key Recommendations-FMI; II. Selected Data; 10. Selected Economic Indicators, 2010-2015; 11. Financial Soundness Indicators; 12. Financial System Structure, 2008-2012; III. Risk Assessment Matrix; 13. Risk Assessment Matrix; IV. Banking Sector Stress Tests; 14. Main Macroeconomic Variables for the Swiss Economy; 15. Solvency Stress Test Matrix; 16. Liquidity Risk Stress Test Matrix
Summary "Switzerland's financial sector is one of the largest in the world, especially relative to GDP. It is home to two of the largest banks, which are designated as globally systemically important financial institutions (G-SIFIs), and one of the largest reinsurance companies. The two global banks, account for 43 percent of Swiss banking sector deposits and 18 percent of capital; in addition, there are 24 cantonal banks, one of which has been designated a domestically systemically important financial institution (D-SIFI), as well as the newly licensed Postfinance, a cooperative Raiffeisenbank, and small private and regional banks. The two global banks - particularly UBS - were hard hit by the recent global financial crisis (GFC); the rest of the banking sector emerged relatively unscathed. In response to the GFC the Swiss authorities took forceful action. The single supervisor, the Swiss Financial Market Supervisory Authority (FINMA), became operational in 2009. Capital standards were raised above Basel minima and ahead of the Basel implementation timetable. Additional capital buffers were imposed on the two large banks, and contingent capital instruments (CoCos) introduced. Macroprudential instruments were analyzed, and at end-September 2013 a countercyclical capital buffer (CCB) targeting residential property mortgages took effect; an increase in the CCB was announced in January 2014, to take effect from June 2014. The insurance industry became subject to the Swiss Solvency Test (SST). Stress tests indicate that the banks are robust against even severe shocks. Banks have increased their capital, and the two global banks have achieved substantial deleveraging. FINMA has focused on significantly improving the quality of its supervision. That said, identification of individual bank risk was hindered as legal constraints prevented the Swiss authorities from providing regulatory data at the individual bank level. Hence the stress tests will not have served to indentify outliers in performance. Nonetheless, there remain important vulnerabilities and challenges to financial stability: The Swiss economy is among the most interconnected in the world and is deeply exposed to volatility in the European Union (EU). Stresses in the euro area periphery led to "safe haven" flows to the Swiss franc, putting sustained upward pressure on the rate, which the authorities seek to counter through maintaining an exchange rate floor. Real estate bubbles appear to be emerging; with monetary instruments not available, macroprudential instruments are being introduced, but so far are limited and untested. While important progress has been made in addressing too-big-to-fail (TBTF) and too-big-to- save (TBTS) issues, this is still a work in progress. Interest rates are negative at some maturities, threatening the business models of life insurance and pension companies. Temporary alleviation from the SST is in effect through 2015"--Abstract
Notes "Prepared by Charles Enoch and Miguel Segoviano"--Page 2 of pdf
"May 2014."
"April 16, 2014"--Page 2 of pdf
Online resource; title from pdf title page (IMF Web site, viewed June 10, 2014)
Subject International Monetary Fund -- Switzerland
SUBJECT International Monetary Fund fast
Subject Banks and banking -- Switzerland -- Evaluation
Banks and banking -- State supervision -- Switzerland
Financial institutions -- Switzerland -- Evaluation
Financial institutions -- State supervision -- Switzerland
Financial crises -- Switzerland -- Prevention
Banks and banking -- Evaluation
Banks and banking -- State supervision
Financial crises -- Prevention
Financial institutions -- Evaluation
Financial institutions -- State supervision
Switzerland
Form Electronic book
Author Segoviano, Miguel A.
International Monetary Fund.
ISBN 9781498340809
1498340806
9781498390392
1498390390