Front Matter Page
IMF Country Report No. 14/264
SWITZERLAND
DETAILED ASSESSMENT OF COMPLIANCE—BASEL CORE PRINCIPLES FOR EFFECTIVE BANKING SUPERVISION
September 2014
This Detailed Assessment of Compliance on the Basel Core Principles for Effective Banking Supervision on Switzerland was prepared by a staff team of the International Monetary Fund. It is based on the information available at the time it was completed on August 20, 2014.
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©2014 International Monetary Fund
Front Matter Page
SWITZERLAND
DETAILED ASSESSMENT OF COMPLIANCE
BASEL CORE PRINCIPLES FOR EFFECTIVE BANKING SUPERVISION
September 2014
Prepared By
Monetary and Capital Markets Department
This Detailed Assessment Report was prepared in the context of an IMF Financial Sector Assessment Program (FSAP) mission in Switzerland during September 2013, led by Charles Enoch, IMF and overseen by the Monetary and Capital Markets Department, IMF. Further information on the FSAP program can be found at http://www.imf.org/external/np/fsap/fssa.aspx
Contents
GLOSSARY
EXECUTIVE SUMMARY, KEY FINDINGS AND RECOMMENDATIONS
INTRODUCTION
INSTITUTIONAL AND MARKET STRUCTURE – OVERVIEW
PRECONDITIONS FOR EFFECTIVE BANKING SUPERVISION
DETAILED ASSESSMENT
A. Supervisory Powers, Responsibilities and Functions
B. Prudential Regulations and Requirements
SUMMARY COMPLIANCE WITH THE BASEL CORE PRINCIPLES
RECOMMENDED ACTIONS AND AUTHORITIES COMMENTS
A. Recommended Actions
B. Authorities’ Response to the Assessment
Glossary
| AC |
Additional Criteria |
| AMA |
Advanced Measurement Approach |
| AML |
Anti-Money Laundering |
| AMLA |
Federal Act on Combating Money Laundering and Terrorist Financing in the Financial Sector |
| BA |
Federal Act on Banks and Savings Banks |
| BO |
Federal Ordinance on Banks and Savings Banks |
| BoD |
Board of Directors |
| BCBS |
Basel Committee on Banking Supervision |
| BCP |
Basel Core Principles |
| CAMELS |
Capital, Asset, Management, Earnings, Liquidity and Sensitivity |
| CAO |
Capital Adequacy Ordinance |
| CDD |
Customer Due Diligence |
| CEO |
Chief Executive Officer |
| CHF |
Swiss Franc |
| COCO |
Convertible Capital |
| CRO |
Chief Risk Officer |
| EBA |
European Banking Authority |
| EBK |
Swiss Federal Banking Commission (predecessor institution of FINMA) |
| EC |
Essential Criteria |
| FAOA |
Federal Audit Oversight Authority (Switzerland) |
| FDF |
Federal Department of Finance |
| FINMA |
Swiss Financial Market Supervisory Authority |
| FIU |
Financial Intelligence Unit |
| FSA |
Financial Services Authority (U.K.) |
| FSAP |
Financial Sector Assessment Program |
| FSB |
Financial Stability Board |
| FTE |
Full-time Equivalent |
| GAAP |
Generally Accepted Accounting Principles |
| G-SIB |
Global Systemically Important Bank |
| G-SIFI |
Global Systemically Important Financial Institution |
| HQLA |
High-Quality Liquid Assets |
| IAS |
International Accounting Standards |
| IFRS |
International Financial Reporting Standards |
| IRB |
Internal-Rating Based |
| KAM |
Key Account Manager |
| LCR |
Liquidity Coverage Ratio |
| LPA |
Loss Potential Analysis |
| LO |
Liquidity Ordinance |
| MIS |
Management Information System |
| MOU |
Memorandum of Understanding |
| MROS |
Money Laundering Reporting Office Switzerland |
| PEP |
Politically Exposed Person |
| PRA |
Prudential Regulation Authority (U.K.) |
| RCAP |
Regulatory Consistency Assessment Program |
| SA |
Standardized Approach |
| SFBC |
Swiss Federal Banking Commission (predecessor institution of FINMA) |
| SNB |
Swiss National Bank |
| SRO |
Self Regulatory Organization |
| SOP |
Standard Operating Procedure |
| STR |
Suspicious Transaction Report |
| SCC |
Swiss Criminal Code |
| TBTF |
Too Big To Fail |
| TIS |
Team Intensive Supervision |
| UBO |
Ultimate Beneficiary Owner |