Switzerland has proposed stronger powers for its financial regulator Finma and new rules on bankers' accountability and bonuses, as part of a regulatory overhaul following Credit Suisse's 2023 collapse. The Federal Council launched a consultation on changes to the Banking Act and liquidity ordinance, enabling Finma to impose fines and intervene in troubled banks. Larger banks must assign executive responsibilities, while systemically important banks face deferred or clawed-back bonuses for misconduct.

The measures, part of a 'Too Big to Fail' package, aim to prevent future crises after UBS's $1.7tn assets reshaped the economy. The consultation runs until November 19, with reforms potentially enacted in 2029. A contentious $20bn capital requirement for UBS, Switzerland's only globally systemically important bank, faces parliamentary pushback.

The Swiss Bankers Association supports accountability measures but opposes UBS's capital clampdown as detrimental to competitiveness. Lawmakers have delayed a vote on UBS's capital rules, discussing alternatives to common equity tier one funding. The reforms seek to stabilize Switzerland's financial sector, which contributes ~9% of GDP.