A recent report by the Swiss Financial Market Supervisory Authority (FINMA) has revealed that Credit Suisse’s parent bank had lower capitalization than expected, which had negative consequences for the bank during the crisis. The report highlights that the regulations for large banks, particularly the “Too big to fail” requirements, allowed the parent bank to maintain significantly lower capital ratios compared to the consolidated group. While the consolidated group met the requirements with a common equity tier 1 (CET1) ratio of 14.1 percent, the parent bank had a core capital ratio of only 10 percent. This weaker capitalization severely limited the bank’s ability to restructure and resulted in income loss from subsidiary units. The report emphasizes that the parent bank was unable to generate the necessary capital for the mandated capital build-up. Financial analysts argue that this situation calls for a stronger capitalization of the parent bank to be included in the “Too big to fail” regulations.

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Information	Details
Geography	Europe
Countries	🇨🇭
Sentiment	neutral
Relevance Score	1
People	Yvan Lengwiler, Alain Girard, Bundesrat
Companies	Bundesrat, UBS, Finma, Credit Suisse, Finanzstabilitätsrat
Currencies	None
Securities	None