The Swiss Financial Market Supervisory Authority (FINMA) has completed its annual review of emergency and recovery plans for domestic systemically important banks, highlighting shortcomings at PostFinance.
FINMA Flags PostFinance Weakness in Emergency Planning
In its 2024 assessment, FINMA confirmed that the emergency plans for Zürcher Kantonalbank (ZKB) and Raiffeisen meet regulatory standards.
However, PostFinance’s plan remains insufficient, with the institution still lacking adequate recapitalisation capacity to absorb losses in the event of a crisis.
PostFinance acknowledged the issue last year and has been raising the necessary funds since 2024, with completion expected by the end of 2025.
FINMA also criticised PostFinance’s alternative strategy, stating it does not currently guarantee the continuity of essential banking functions should restructuring prove unfeasible.
By contrast, recovery plans for all three banks – PostFinance, Raiffeisen and ZKB – were approved. FINMA said its post–Credit Suisse assessment placed particular emphasis on trigger thresholds for recovery measures and scenario analysis, noting improvements across the institutions.
Systemically important banks in Switzerland are required to demonstrate annually how they would preserve core functions, including deposits, payments and lending, if faced with insolvency.
They must also prove they can stabilise independently without state intervention.
FINMA reiterated its support for an expanded “crisis toolkit,” as proposed by the Federal Council, to enhance the regulator’s ability to restructure or wind down troubled banks.
It said such measures would help bolster the resilience of the Swiss financial system. A separate assessment of UBS will follow later this year.
