Small banks regime:
already in motion

Due to quantitative and qualitative exemptions and relaxations, participants are expected to spare their expenses. As an example, FINMA provides such benefits for involved institutions: to forego the calculation of risk-weighted assets and the structural liquidity ratio and have reduced disclosure obligations. Jan Blöchliger, Head of FINMA's Banks division acknowledges that advantages above have a long-term effect, which allows avoiding the consequences of possible regulatory changes.

From now on, all small institutions without observable increased risks may request two- or three-yearly auditing by their audit firm instead of annual auditing. Nineteen participants of the small banks regime are already benefiting from reduced audit frequency.

FINMA notes that participation in the new regime is voluntary, and there are approximately 200 financial intermediaries who may register for participation. The regulator does not publish any list of participants in the small banks regime.