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Small banks regime:
already in motion

March 1, 2020| Legal News

Small banks regime: already in motion

Recently FINMA launched a small banks regime in order to reduce the burden on smaller institutions. Sixty-four out of seventy banks which applied to register fulfilled mandatory requirements and currently are participating in the small banks regime. The main objective of the latter is to reduce the regulatory burden on small, particularly liquid and well-capitalised institutions.
Advantages of the new regime
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.
Relaxations in audit requirements
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.
Status of the small banks regime
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.
Source: https://www.finma.ch/en/news/2019/11/20191127-mm-k...
https://www.finma.ch/en/supervision/banks-and-secu...

Legal disclaimer. This article does not constitute legal advice and does not establish an attorney-client relationship. The article should be used for informational purposes only.

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