ZURICH: Switzerland’s authorities, drawing on the teachings of the collapse of Credit score Suisse, on Wednesday (Aug 12) launched consultations on new banking guidelines that would restrict bankers’ bonuses.
The Federal Council mentioned the consultations would cowl measures designed to “strengthen company governance”, guarantee banks are ready for crises, and grant better powers to the monetary market supervisory authority (FINMA).
“The purpose is to strengthen resilience and confidence within the Swiss monetary system while defending our financial system, taxpayers and the state,” Finance Minister Karin Keller-Sutter instructed journalists in Bern.
The proposed measures focus specifically on bankers’ bonuses. They suggest to withhold or recuperate bonuses from “probably the most senior or most extremely paid managers at systemically essential banks” within the occasion of rule-breaking or mismanagement.
The purpose is to keep away from cost packages that encourage extreme risk-taking.
“The Federal Council needs remuneration to be geared in direction of long-term revenue,” mentioned Keller-Sutter.
The session will begin in late August and run till November.
