Bern, Switzerland (GenevaLunch) – The Swiss Financial Market Supervisory Authority (Finma) recognizes that no one was completely prepared for the financial crisis that hit Switzerland in August 2007 nor did they realize the extent of the dangers the crisis posed, Finma says in a report 14 September. But effective remedial action was taken quickly by the Swiss Federal Banking Commission (SFBC), and lessons have been learned. It says that Finma’s own structure was not an impediment to an adequate reaction to the crisis.
The SFBC, the body most familiar with the banking system, and which predates Finma’s creation, “responded rapidly and decisively, and (..) fundamental decisions for stabilizing the financial centre were made in a targeted and timely manner”, the report says. SFBC particularly monitored the two main banks for capitalization and liquidity both before and during the crisis. The report adds that though weak in the areas of early identification of risks and implementation of counter-measures, the crisis was well-managed because “the authorities were prepared to cope with a crisis at one of the major banks.”
Finma was set up 1 January 2009 to incorporate three bodies: the Federal Office of Private Insurance (Fopi), the SFBC, and the anti money-laundering control authority.