IMF acknowledged authorities' decisive action re the UBS takeover of Credit Suisse.
- Follows SWI GVT, SWI CB, FINMA March 2023 approved UBS/CS takeover.
- IMF noted that Credit Suisse’s failure reflected weaknesses in internal controls, risk management, repeated regulatory breaches, financial losses, and deposit outflows.
- Authorities' decisive actions prevented potential spillovers to the global banking sector.
- The Swiss authorities must monitor the merger of UBS and Credit Suisse, including with regard to domestic competition and do a relevant regulatory oversight analysis.
- Review of the too-big-to-fail regulatory framework for global systemically important banks was also of significance at the international level, stability remained a priority.