Sunday, April 15, 2012

Swiss Consultation Paper on Adapting FINMA Circular "Capital Buffer and Capital Planning – Banks"

The Swiss Financial Market Supervisory Authority (FINMA) is opening a consultation on adapting FINMA Circular 11/2 "Capital buffer and capital planning – banks". The Circular, which has been in force since 1 July 2011, is based on provisions prescribed in the current Capital Adequacy Ordinance (CAO) pertaining to the requirements for the quality of capital needed for the capital buffer. To date, the quality of capital defined in the CAO has been in accordance with Basel II. Since the CAO is currently being fully revised and adjusted to incorporate the modified definition of the term 'equity capital' as specified in the Basel III reform package, it is also deemed necessary to change the Circular appropriately. Comments on the proposed adjustments to the Circular may be submitted up to 30 April 2012.

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