Business · Companies · 9 hrs ago
Swiss committee backs state liquidity support for major banks
A Swiss parliamentary committee backed a plan for emergency state liquidity support for systemically important banks, including UBS.
The support, known as a Public Liquidity Backstop, would give these banks access to state funds during a severe crisis.
The plan would put into law a measure introduced under emergency powers in 2023 during the Credit Suisse crisis.
The committee approved the proposal by nine votes to none, with three abstentions.
It wants banks with substantial foreign business to pay a fee, a rule that would currently apply only to UBS.
Some committee members oppose the fee, and the Swiss Bankers Association says an extra charge is not justified because banks would already pay premiums and interest if the support were used.
The Swiss Council of States is expected to decide on the disputed points during its winter session.
A Swiss parliamentary committee has backed putting state liquidity support for systemically important banks into law.
The committee approved the proposal by 9 votes to 0, with 3 abstentions.
It supports charging a fee for making the support available, but only to systemically important banks with substantial international business, a criterion that currently applies only to UBS.
The Swiss Bankers Association supports the liquidity backstop but opposes the fee, calling it unjustified and discriminatory.
The Swiss Council of States is expected to discuss and decide the issue during its winter session.
- Who
- The Council of States Committee for Economic Affairs and Taxation (WAK-S) and systemically important Swiss banks, including UBS.
- What
- The committee backed legislation for a state liquidity backstop and proposed a fee limited to banks with substantial international business.
- When
- The committee announced its decision on October 13, 2026. The Council of States is expected to consider the issue during its winter session.
- Where
- Switzerland.
- Why
- The proposal would establish state liquidity support for systemically important banks in law. The committee majority says international banking business carries greater risk than domestic business.
Committee majority
Committee minority and Swiss Bankers Association
Fee for making liquidity available
Committee majority
Supports a fee for systemically important banks with substantial international business; currently, only UBS meets that criterion.
Committee minority and Swiss Bankers Association
The committee minority opposes a fee because banks have no legal entitlement to state liquidity support; the Swiss Bankers Association says an additional charge is unjustified and discriminatory.
The Federal Council approved a proposal to establish a Public Liquidity Backstop.
The backstop was introduced under emergency law during the Credit Suisse crisis.
The Council of States committee backed the legislation by 9 votes to 0, with 3 abstentions, and supported limiting the fee to banks with substantial international business.
The Council of States is expected to discuss and decide the outstanding questions.
- Committee vote
- 9 in favour, 0 against, 3 abstentions
- Fee eligibility
- Systemically important banks with substantial international business
- Bank currently meeting the criterion
- UBS
- Other systemically important banks named
- Zurich Cantonal Bank, PostFinance and Raiffeisen Switzerland
- Expected parliamentary consideration
- Council of States winter session
3 sources
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What people are saying
A further charge is not justified and discriminatory: it would affect only UBS and weaken its international competitiveness
not justified and discriminatory