On 17 December 2021, the Swiss Parliament adopted the partial revision of the Swiss Federal Banking Act (Bundesgesetz über die Banken und Sparkassen). The amendments intend to strengthen the protection of customer deposits with banks in the interest of the financial market stability.
The partial revision which was proposed by the Federal Council and was now adopted by the Swiss Parliament focuses on three main areas of investment protection: (i) the payment of deposit insurance, (ii) the deposit insurance scheme and (iii) the increase of financial market stability.
Payment of Deposit Insurance (Einlagensicherung)
The payment of the deposit insurance (up to CHF 100,000 per client and per bank) by the bankruptcy liquidator to the depositor will be made within seven working days.
Deposit Insurance Scheme
The maximum contribution of 6 billion Swiss francs to the deposit insurance scheme will be increased and set at 1.6 percent of the total amount of the guaranteed deposits (which currently amounts to around CHF 7.4 billion). The minimum amount must be at least 6 billion Swiss francs.
Financial Market Stability
Banks will secure half of the contribution to the deposit insurance scheme by depositing easily realisable securities of high quality or cash in Swiss francs permanently with a third-party custodian.
Furthermore, the revised Swiss Banking Act also brings about adjustments regarding the insolvency of banks as well as the segregation of securities which will be implemented in the Swiss Federal Act on Intermediated Securities.
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