Switzerland: Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics: Banking Supervision, Securities Regulation, Insurance Regulation, Payment Systems, and Monetary and Financial Policy Transparency
IMF Staff Country Reports, June 3, 2002
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- Canonical URL
- Switzerland: Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics: Banking Supervision, Securities Regulation, Insurance Regulation, Payment Systems, and Monetary and Financial Policy Transparency
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Bibliographic details
- Published: June 3, 2002
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451807264.002
Report scope and metadata
- Publication date: June 3, 2002
- Topics covered: Banking Supervision; Securities Regulation; Insurance Regulation; Payment Systems; Monetary and Financial Policy Transparency
- Publication series: Country Report No. 2002/108
- Issue: 108
- Volume: 2002
- Pages: 76
- DOI: https://doi.org/10.5089/9781451807264.002
- Stock No: 1CHEEA0032002
- ISBN: 9781451807264
- ISSN: 1934-7685
- Subject classification: Banking, Commercial banks, Expenditure, Financial institutions, Financial regulation and supervision, Financial services, Insurance, Insurance companies, Pension spending
- Keywords: cantonal bank, central bank, CR, financial system, Global, headline inflation, Insurance, Insurance companies, interest rate, investment fund, ISCR, liquidity position, market share, monetary policy, Pension spending, private banking, Raiffeisen bank
Key findings
- Overall assessment:
- Financial institutions in Switzerland are well capitalized.
- The risks of the current environment should not be underestimated.
- Large internationally active banks:
- Have suffered from the recent asset market volatility and the global economic slowdown.
- Domestically oriented banks:
- Are well capitalized.
- Their lower level of underlying profitability makes them sensitive to the economic cycle.
Implicit systemic considerations (derived from findings presented)
- Capital adequacy is a strength across Swiss financial institutions, but exposure differs by bank type:
- Internationally active banks: vulnerability to asset market volatility and global slowdown.
- Domestically oriented banks: vulnerability to domestic economic cycle due to lower profitability.
- Monitoring and supervision priorities implied by the assessment:
- Continue close supervision of large internationally active banks given market and global growth risks.
- Monitor profitability and cyclical sensitivity of domestically oriented banks to detect stress early.
International Monetary Fund. Switzerland: Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics: Banking Supervision, Securities Regulation, Insurance Regulation, Payment Systems, and Monetary and Financial Policy Transparency. IMF Staff Country Reports 2002, 108 (2002).