According to Finma, Postfinance must continue to work on its emergency plan

All domestically focused systemically important banks need both an emergency plan and a stabilization plan, which Finma assesses annually. The emergency plans submitted by Raiffeisen and ZKB in 2024 would meet the regulatory requirements, according to a statement issued by Finma on Thursday.

However, Postfinance does not currently have sufficient and adequate capital to cover losses that are expected at the time the emergency plan is activated. However, the institution had already recognized this deficiency in 2023. It has been building up the necessary funds since 2024 and will continue to do so until the end of 2025.

In addition to the capital issue, Postfinance's so-called alternative strategy also does not currently meet the regulator's requirements. This concerns how the systemically important functions can be continued in the event of a risk of insolvency if restructuring is not possible.

Stabilization plan is okay

Meanwhile, the so-called stabilization plans of all three institutions have been approved. These involve how the banks can stabilize themselves sustainably and without state intervention in the event of destabilization. It is crucial that the institutions take measures at an early stage in the crisis.

Following the Credit Suisse debacle, Finma is now paying particular attention to threshold values that are relevant for the triggering of stabilization measures by the bank and the scenario analysis. According to the authority, all banks have made progress in this area.

In contrast to internationally active systemically important banks - such as UBS - domestically oriented systemically important banks in Switzerland are not currently subject to a resolvability assessment in accordance with internationally agreed standards. Finma intends to provide information on UBS's crisis planning in fall 2025.