The banks’ role in shaping Switzerland’s future 

This year’s SBA Bankers Day in Bern focused on the future of the Swiss financial centre, under the banner of “The day after tomorrow”. In his address, SBA Chairman Marcel Rohner reminded his audience that the sector has overcome numerous challenges over the last two decades, from the global financial and debt crisis and negative interest rates to the removal of bank-client confidentiality. This has been possible thanks to robust business models and intelligent, measured regulation. Two factors will remain key in the world of “the day after tomorrow”: the banks must do business profitably in order to remain successful and resilient over the long term; and regulation must promote stability without jeopardising the financial centre’s international competitiveness.

The Federal Council’s regulatory package goes too far 

In his speech, Marcel Rohner offered his opinion on the package of regulation presented by the Federal Council in June. He welcomed the intention to strengthen the financial centre’s stability, but criticised essential elements of the proposed measures as excessive. “If these measures are implemented in their present form, we face the threat of unnecessary bureaucracy and a loss of competitiveness. That would weaken the financial centre, a vital pillar of our economy”, Rohner explained, and called for targeted adjustments in four main areas: 

• Proportionality: The majority of the measures proposed are to apply to all banks, even though only one institution was affected by the crisis. The scope and design of regulation must be appropriate and reflect the individual banks’ differing situations. For the vast majority of institutions, there is absolutely no need to impose additional requirements.
• Powers of FINMA: The planned expansion of the supervisory authority’s powers, enabling it, for example, to issue industry bans for breaches of internal regulations or inform the public about ongoing investigations, is much too far-reaching. A clear code of procedure is needed for FINMA that ensures adherence to the rule of law and a proportionate approach.
• Corporate governance: The planned rules on the composition of the board of directors and executive board, along with interventions by the supervisory authority in decisions on remuneration, would significantly limit institutions’ organisational freedom. Corporate governance rules must be guided by a measured approach and not interfere unduly with companies’ autonomy.
• Capital requirements: When it comes to capital and valuation rules, the Federal Council has chosen the harshest option for all of the three factors it can influence. This will impose a disproportionate burden on individual institutions. The rules must not go beyond what is necessary: they must be realistic and aligned internationally in order to avoid endangering the financial centre’s competitiveness.

The foundation of prosperity and innovation

Marcel Rohner made clear that while the debate on regulatory issues is important, it must not be conducted without reference to the central challenges of our time. Any discussion on the future of the financial centre must also consider its role in tackling demographic change and the digital transformation, financing the energy transition and responding to geopolitical uncertainties.  A strong, resilient and internationally connected financial centre is essential if those developments are to be addressed effectively.  

Rohner also stressed the importance of the financial centre to Switzerland’s economy as a whole, noting that banks, insurers and financial service providers generate around 12.5% of the tax revenues of the federal government, cantons and communes, and provide financing for mortgages and corporate loans. At the same time, the financial centre is demonstrating its ability to innovate, for example by developing digital solutions such as TWINT and further refining distributed ledger technologies (DLT).  

“The Swiss financial centre will still be here the day after tomorrow. But the form it will take is up to us to decide”, Rohner concluded.

Communication initiative highlights the banks’ importance 

At this year’s Bankers Day, the SBA also launched its new communication initiative, the Association’s first of its kind. Entitled “The River”, it is designed to raise awareness of the banks’ role in society and the economy, and encourage an open and constructive dialogue about its importance. At its heart is the leitmotif of the river, symbolising not just Switzerland as a land of waterways, but also movement, energy and change – characteristics that the banking centre embodies.  

The initiative uses short films and podcasts which are disseminated via digital channels such as LinkedIn, Instagram, Spotify and YouTube. With a contemporary feel, they convey just how diverse, innovative and forward-looking the Swiss banking centre is. The films are set on Swiss rivers, where people in boats move forwards with their ideas, goals and dreams. The banks – depicted in the film as icons lighting the way – act as guides and enablers, helping to make them reality. The podcasts complement the visual narrative with personal insights and a wide range of perspectives offered by personalities from business and society.

SBA Annual General Meeting 

At the SBA’s Annual General Meeting today, Nic Dreckmann, Chief Operating Officer, Deputy Chief Executive Officer and Member of the Executive Board of Bank Julius Baer & Co. Ltd, and Nicolas Krügel, CEO of Banque Cantonale de Genève, were elected to the Board of Directors for the first time. All members of the Board of Directors were confirmed in office for a three-year term in an ordinary election. 

About the SBA 

The SBA is the umbrella organisation of the Swiss banks. It represents the sector nationally and internationally vis-à-vis the private sector, policymakers, the authorities and the general public. The SBA advocates for open markets, scope for entrepreneurial freedom and a level playing field. As a centre of competence, it propagates banking expertise and actively engages in future topics. The SBA was founded in Basel in 1912, and its membership today comprises around 265 organisations and some 12,000 individuals.