Exclusive: Swiss authorities, banks mull new rules to prevent bank runs -sources
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Swiss authorities and lenders, including UBS , are discussing new measures to prevent bank runs after Credit Suisse’s rescue earlier this year, four sources familiar with the matter said, a move that could affect billions in deposits.

The ongoingtalks, which have not been previously reported and are part of a broader review of the country’s banking rules, are intended for the top Swiss banks and could target mainly their wealth clients, two sources said.

Among the measures being discussed is the option to stagger a greater portion of withdrawals over longer periods of time, one of the sources said. Imposing fees on exits is also an alternative being discussed, two of the sources said.

Rewarding clients who tie up their savings for longer with higher interest rates is being debated, one of the sources said.

  • 0x815@feddit.deOPEnglish
    2·
    1 year ago

    Banks must guard against faster bank runs, a senior Bank of England official says

    Challenges facing central banks included “how to ensure that banks’ liquidity insurance remains appropriate as technological change increases the risk of larger and faster deposit runs, of the kind seen this spring in the U.S.,” the BoE’s executive director for markets, Andrew Hauser, said.

    Central banks also needed to judge where their balance sheets should settle after expanding hugely since over 15 years of emergency bond-buying.

    A third challenge was how to ensure the stability of the financial system as a whole - including non-bank market finance such as hedge funds - in the face of increasingly frequency systemic liquidity shocks.