© Reuters. FILE PHOTO: Switzerland’s national flag flies at the headquarters of Swiss bank Bank Sparhafen Zuerich (BSZ) in Zurich, Switzerland July 31, 2019. REUTERS/Arnd Wiegmann
BERLIN (Reuters) – The Swiss government on Friday adopted amendments to its liquidity ordinance to ensure systemically important banks can better weather events such as the COVID-19 pandemic in future.
“The revision is intended to ensure that systemically important banks hold sufficient liquidity to absorb liquidity shocks and cover their needs in the event of restructuring or liquidation,” the Swiss Federal Council said in a statement.
One change is that banks deemed systemically important now have to hold sufficient liquidity to weather a 90-day liquidity crisis, instead of the 30-day threshold previously, it said.
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