The Swiss Financial Market Supervisory Authority (FINMA) sees more unease in the Swiss financial hub than in the previous year.
In addition to the main risks, FINMA identified two new problem areas in its "Risk Monitor 2023". According to the report published on Thursday, these are in the areas of liquidity and refinancing as well as the outsourcing of business activities.
According to FINMA, the liquidity and refinancing risk includes the danger that institutions do not have sufficient liquid funds to fulfil their obligations in the event of a crisis. This problem could be fuelled, for example, by an increased need for collateral, rating downgrades or rapid outflows of client funds.
The latter was one of the main causes of the collapse of Credit Suisse, which was then taken over by UBS. According to FINMA, such a so-called "bank run" can trigger a "stress situation with an unstoppable downward spiral". ...