Banks will have to have sufficient liquidity reserves In the future. The new Liquidity Ordinance requires appropriate management and monitoring of liquidity risks. In particular, banks must carry out stress tests and prepare an emergency concept for liquidity shortages. The liquidity management requirements apply to all banks, but they are tiered according to the type, scope, complexity and degree of risk of the business activity.

The ordinance also governs the quantitative requirements concerning the liquidity to be held. Initially, these will be taken over directly from the Banking Ordinance, and should be supplemented with the quantitative liquidity standards under Basel III at a later stage according to the international timetable.

Finally, the ordinance contains supplementary requirements for systemically important banks. In terms of content, they are based on the currently applicable agreements of June 2010 between the two big banks and FINMA on the holding of liquidity.

The ordinance will gradually enter into force from 1 January 2013. The supplementary requirements for systemically important banks, as the last part of the too big to fail package of measures, will have to be approved beforehand by the Federal Assembly.

Address for enquiries:

Roland Meier Media Spokesperson FDF +41 31 322 60 86 roland.meier@gs-efd.admin.ch

Publisher:

The Federal Council

Internet: http://www.admin.ch/br/index.html?lang=en

Federal Department of Finance

Internet: http://www.efd.admin.ch