Switzerland: Financial Sector Stability Assessment

Switzerland: Financial Sector Stability Assessment
ISBN-10
1498390153
ISBN-13
9781498390156
Series
Switzerland
Category
Business & Economics
Pages
52
Language
English
Published
2014-05-28
Publisher
International Monetary Fund
Author
International Monetary Fund. Monetary and Capital Markets Department

Description

This paper discusses key findings of the Financial System Stability Assessment on Switzerland. Stress tests indicate that the Swiss banks are robust against even severe shocks. Banks have increased their capital, and the two global banks have achieved substantial deleveraging. Swiss Financial Market Supervisory Authority has focused on significantly improving the quality of its supervision. Real estate bubbles appear to be emerging. With monetary instruments not available, macroprudential instruments are being introduced, but so far are limited and untested. Interest rates are negative at some maturities, threatening the business models of life insurance and pension companies.

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