Switzerland Cracks Down on Bank Bonuses Amid Stability Concerns

Switzerland has launched a public consultation on stricter banking regulations aimed at boosting financial stability after the collapse of Credit Suisse in 2023.

The draft proposals, which were sketched out last year as part of Switzerland's overhaul of its 'too-big-to-fail' measures, would require banks to structure bonus schemes that reward long-term performance and discourage excessive risk-taking.

Banks with at least 250 employees would have to clearly assign responsibility for key decisions to senior managers, and market regulator FINMA would gain powers to intervene earlier when risks emerge.

The plans also envisage simplifying the transfer of collateral to the Swiss National Bank, which would support banks' ability to obtain central bank liquidity in a crisis.