The Swiss Bankers Association (SBA) takes a highly critical view of the amendment to the Banking Act regarding the capital requirements for foreign holdings in the parent company of systemically important banks. The Federal Council is ignoring the predominantly critical feedback from the consultation process, particularly from the real economy and around 16 cantons. These rightly point out that this maximalist proposal and Switzerland’s unilateral approach will weaken the financial centre, hamper the supply of credit and make financial services more expensive for businesses. The SBA welcomes the fact that the Federal Council has moved away from its extreme proposals in the Capital Adequacy Ordinance. Although the new valuations for specific balance sheet items such as software go beyond international standards, they are now aligned with competing financial centres and are therefore acceptable to the Swiss financial centre. It is positive that the vast majority of banks are now exempt from further tightening measures.