Switzerland Tackles Banker Bonuses in Bid to Boost Financial Stability
Switzerland has launched a public consultation on stricter banking regulations that aim to boost financial stability following the collapse of Credit Suisse in 2023.
The proposals, announced by Finance Minister Karin Keller-Sutter, include rules for bonus schemes at banks such as UBS, which must reward long-term, sustainable performance and discourage excessive risk-taking.
Under the plans, a significant portion of variable compensation must be deferred for top executives and high earners for several years, typically four to five years, and can be reduced or cancelled if misconduct or losses emerge during this period.
The Swiss government is also seeking to simplify the transfer of collateral to the Swiss National Bank in order to support banks' ability to obtain central bank liquidity in a crisis.