The update directly addresses liquidity support frameworks, collateral requirements, and the Extended Liquidity Facility, which are core liquidity regulation obligations for systemically important banks.
Mandatory inheritance: Liquidity is a child of Prudential Standards, so Prudential Standards must be raised as the secondary tag.
Product
This regulatory update concerns systemic banking stability, liquidity facility frameworks, and crisis management infrastructure rather than any specific retail financial product or service.
No secondary product type is identifiable in this update, which addresses macroprudential regulation, central bank liquidity facilities, and banking system resilience rather than consumer or retail investment products.
Obligation
The update mandates that systemically important and medium-sized banks prepare and maintain sufficient collateral for potential SNB liquidity support, which is a Controls Implementation obligation requiring deployment of a practical preventive measure.
The update separately requires banks to develop recovery planning and resolvability frameworks for systemically important institutions, which involves designing governance structures and operational readiness measures that align with Governance and Oversight accountability.
Activity
This regulatory announcement concerns systemic financial stability, liquidity facility access, and crisis management frameworks at the institutional/macroprudential level, which do not map directly to any specific retail-facing business activity in the taxonomy.
While deposit-taking institutions are affected by liquidity and stability regulations, the update focuses on systemic risk management and collateral frameworks rather than the retail deposit-acceptance activity itself.
Themes
The update centers on liquidity requirements, collateral preparation, and recovery planning for systemically important banks to strengthen financial stability, which is the core Prudential Requirements theme.
The recovery planning and resolvability frameworks, combined with early intervention and crisis-management cooperation measures, reflect operational and institutional resilience elements relevant to Operational Resilience.
Functions
The update directly imposes new liquidity collateral preparation and asset-transfer obligations on banks' treasury and funding functions to meet SNB liquidity support requirements.
The enterprise risk function must integrate recovery planning and resolvability framework obligations into the firm's overall risk appetite and crisis-management governance.
2026-08-13 09:17:53·tojuri@vixio.com
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Swiss National Bank welcomes measures to strengthen ‘too big to fail’ regulations
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TITLE: Switzerland's National Bank Welcomes Regulatory Measures to Strengthen Too Big to Fail Framework
BODY:
On August 12, 2026, the Swiss National Bank (SNB) welcomed regulatory measures proposed by the Federal Council to strengthen Switzerland's "too big to fail" (TBTF) regulations. The measures address regulatory weaknesses identified during the Credit Suisse crisis and represent a significant step toward enhancing the stability of the Swiss financial system.
The proposed measures include amendments to the Liquidity Ordinance, which will require systemically important and medium-sized banks to prepare sufficient collateral for accessing liquidity support from the SNB. Banks must be positioned to transfer assets as collateral to the SNB to enable the provision of liquidity support when needed. The SNB emphasised the importance of banks preparing to participate in the Extended Liquidity Facility (ELF), which becomes available from January 1, 2027.
Beyond collateral requirements, the Federal Council's proposals address recovery planning and resolvability frameworks for systemically important banks, expand the Financial Market Supervisory Authority's (FINMA) early intervention options, and strengthen cooperation between authorities in preventing and managing financial crises. The SNB identified these measures as essential components of a comprehensive approach to improving TBTF regulations. Combined with measures announced by the Federal Council on April 22, 2026, these regulatory changes form a coordinated effort to enhance the resilience of Switzerland's financial system and address structural vulnerabilities exposed by recent banking sector instability.
Banks should begin preparing for participation in the ELF ahead of its January 2027 launch and ensure compliance with the updated Liquidity Ordinance requirements.
Swiss National Bank welcomes measures to strengthen ‘too big to fail’ regulations Press release Swiss National Bank welcomes measures to strengthen ‘too big to fail’ regulations 12 August 2026 The Swiss National Bank welcomes the measures in the area of banking regulation proposed by the Federal Council on 12 August 2026. The planned measures are crucial for resolving regulatory weaknesses highlighted by the crisis at Credit Suisse. They are an important step towards further strengthening the stability of the Swiss financial system. The draft version of the Liquidity Ordinance stipulates that systemically important and medium-sized banks must prepare sufficient collateral for accessing liquidity support from central banks. For the SNB to be able to provide liquidity support when needed, banks must be in a position to transfer their assets as collateral to the SNB. In order to strengthen financial stability, it is also important that as many banks as possible make the preparations to participate in the Extended Liquidity Facility (ELF), which will be available from the beginning of 2027. The SNB also welcomes the other measures proposed by the Federal Council, in particular with regard to the recovery planning and resolvability of systemically important banks, FINMA’s early intervention options and the cooperation between authorities in preventing and managing financial crises. Together with the measures announced by the Federal Council on 22 April 2026, the measures communicated today are, in the SNB’s view, key for improving the ‘too big to fail’ regulations and strengthening the resilience of the Swiss financial system. Further information is available on the SNB website . Download file now Swiss National Bank welcomes measures to strengthen ‘too big to fail’ regulations Your settings Required : These cookies (e.g. for storing your IP address) cannot be rejected as they are necessary to ensure the operation of the website. These data are not evaluated further. Analytics : If you consent to this category, data such as IP address, location, device information, browser version and site visitor behaviour will be collected. For this, cookies will be stored on your device that record information about your user behaviour. These data are evaluated for the SNB's internal purposes and are kept for two years. Third-party : If you consent to this category, third-party services (used, for example, to add social multimedia content to the SNB's website) will be activated which collect personal data, process these data, disclose them abroad - worldwide - and place cookies. The relevant data protection regulations are linked in the ' Privacy statement for the website of the Swiss National Bank '. Choose your preferred settings: Required * Analytics Third-party Accept selected categories Accept all categories This website uses cookies, analytics tools and other technologies to provide requested features, content and services, to personalise the content shown, to provide links to social media, and to analyse the use of the website in anonymised form for the purposes of improving usability. Personal data are also disclosed abroad - worldwide - to video service providers and the analytics tools of these providers are used. More information is available under 'Manage settings'. Accept Manage settings