Regulatory Alerts2019-10-31
FINMA Circular 2011/2 Capital buffer and capital planning – banks
The Swiss Financial Market Supervisory Authority issued Circular 2011/2 to define capital buffer requirements and capital planning standards for banks, securities firms, and financial groups. The regulation mandates that institutions maintain adequate buffers to cover risks not addressed by minimum capital requirements and implement robust internal capital planning processes to ensure solvency during economic downturns. It further establishes specific intervention thresholds and supervisory measures for institutions that fail to meet their capital adequacy targets.
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