Finance
Swiss regulator sees no liquidity bottlenecks but monitoring market turmoil
Published by Global Banking & Finance Review®
Posted on April 8, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on April 8, 2025
2 min readLast updated: January 24, 2026
FINMA sees no immediate liquidity issues but monitors market closely. UBS under scrutiny post-Credit Suisse collapse. Focus on non-bank institutions.
By Ariane Luthi
BERN (Reuters) -Switzerland's financial market regulator FINMA said on Tuesday it sees no liquidity bottlenecks so far due to market turmoil sparked by the imposition of U.S. trade tariffs, but that they could happen later.
FINMA CEO Stefan Walter told Reuters that bottlenecks could occur with a time lag and stressed the importance of keeping an eye on so-called non-bank financial institutions, which include hedge funds, private equity funds and credit funds.
The regulator is monitoring events very closely, liaising with partner authorities and supervised institutions, including systemically important banks like UBS, Walter said.
Presenting its latest annual report, FINMA said it carried out 45 on-site reviews of UBS in 2024 as the bank integrates its old rival Credit Suisse, which collapsed in 2023.
Walter refused to specify how much time UBS could be given to fulfil stricter new capital requirements the Swiss government is expected to propose in early June.
He welcomed that UBS's strategy included limiting the size of its Investment Bank, but said risks could occur in other areas too.
FINMA said it would make greater use of its discretionary powers in future after it identified a number of serious shortcomings in Switzerland's financial sector in 2024, notably in the areas of money laundering and mortgage lending.
"We want to be even more effective," Walter said, calling for a clear legal basis for early intervention and powers to more actively communicate and levy fines.
(Reporting by Ariane Luthi; Editing by Miranda Murray and Susan Fenton)
The article discusses FINMA's monitoring of potential liquidity issues in the Swiss financial market amid global market turmoil.
FINMA is focusing on non-bank financial institutions and systemically important banks like UBS.
FINMA is conducting on-site reviews and plans to use more discretionary powers to address financial sector shortcomings.
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