# Swiss regulator monitoring banks and insurers after SVB collapse Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-03-14 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Swiss Banks in Crisis After Silicon Valley Bank Collapse Meta Description: Swiss regulator FINMA is closely evaluating potential contagion risks for banks and insurers after Silicon Valley Bank and Signature Bank collapses. URL: https://financedigest.com/swiss-regulator-monitoring-banks-and-insurers-after-svb-collapsehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-03-13t183145z2lynxmpej2c0mlrtroptp4swiss-eu-1736814324256-compressed.jpg) ZURICH (Reuters) – Swiss financial regulator FINMA on Monday said it was seeking to identify any potential contagion risks for the country’s banks and insurers following the collapses of Silicon Valley Bank and Signature Bank. Shares in Swiss banks slumped along with others in the sector globally after moves by U.S. authorities to guarantee [deposits of the two lenders failed to reassure investors](https://www.financedigest.com/apollo-assures-investors-deposit-flight-wont-spill-over-to-athene.html "Apollo assures investors deposit flight won’t spill over to Athene"). [Credit Suisse](https://www.financedigest.com/mitsubishi-ufj-to-postpone-at1-bond-issuance-in-credit-suisse-fallout.html "Mitsubishi UFJ to postpone AT1 bond issuance in Credit Suisse fallout") shares hit a new low, while the cost of insuring its debt against a default rose to an all-time high. [Shares of Swiss rival UBS dropped](https://www.financedigest.com/burberry-shares-drop-as-weak-us-demand-overshadows-china-rebound.html "Burberry shares drop as weak US demand overshadows China rebound") more than 7%. FINMA takes note of the media [reports on Silicon Valley Bank](https://www.financedigest.com/how-banks-can-avoid-regulatory-reporting-mistakes-with-a-good-dose-of-automation.html "HOW BANKS CAN AVOID REGULATORY REPORTING MISTAKES WITH A GOOD DOSE OF AUTOMATION") and Signature Bank in the USA and is closely monitoring the situation,” FINMA said in a statement. FINMA is evaluating the [direct and indirect exposure of the banks and insurance](https://www.financedigest.com/should-insurers-buy-data-direct-from-their-customers.html "Should insurers buy data direct from their customers?") companies it supervises to the institutions concerned,” it said. The aim is to identify any cluster risks and potential for contagion at an [early stage.”](https://www.financedigest.com/valuing-your-early-stage-startup.html "Valuing your Early Stage Startup") The regulator said it was in contact with various institutions which could be affected, but declined to name them or the measures it might take. President Joe Biden pledged on Monday to do whatever was needed to address the [banking crisis](https://www.financedigest.com/how-the-2023-banking-crisis-unfolded.html "How the 2023 banking crisis unfolded") precipitated by the collapse of the two lenders which forced regulators to step in with emergency measures to stem contagion. FINMA said it was also [monitoring for any spill-over effects](https://www.financedigest.com/why-machine-learning-is-the-key-to-effective-transaction-monitoring.html "Why machine learning is the key to effective transaction monitoring") from the failure of another tech-focused U.S. bank, Silvergate Capital Corp, which said on Wednesday it was planning to wind down its operations and liquidated voluntarily. The regulator said its supervisory [activities were focused on the risk management](https://www.financedigest.com/with-the-right-active-manager-you-really-do-get-what-you-pay-for.html "With the Right Active Manager, You Really Do Get What You Pay For") of supervised institutions and on dealing with various scenarios. Switzerland’s Federal Department of Finance said it “takes note of the reports on US [banks and the development of the stock](https://www.financedigest.com/stocks-rise-after-bank-sale-fuels-investor-risk-appetite.html "Stocks rise after bank sale fuels investor risk appetite") markets” but would not be further commenting on them. The government department also [pointed to FINMA’s role and said “FINMA is closely monitoring Credit Suisse](https://www.financedigest.com/explainer-credit-suisse-how-did-it-get-to-crisis-point.html "Explainer-Credit Suisse: How did it get to crisis point?") as part of its supervisory activities. The Swiss National [Bank declined to comment on the effect](https://www.financedigest.com/banking-turmoil-will-not-have-knock-on-effect-on-commodities-trafigura-cfo.html "Banking turmoil will not have knock-on effect on commodities -Trafigura CFO") SVB’s collapse could have on Switzerland’s financial sector. In a further reflection of investor concern about [Credit Suisse’s](https://www.financedigest.com/swiss-franc-grapples-with-safe-haven-identity-crisis-after-credit-suisse.html "Swiss franc grapples with safe-haven identity crisis after Credit Suisse") outlook, the price of some of its bonds fell sharply, with some at record lows. Struggling to recover from a string of scandals, Switzerland’s second-biggest bank has begun a major overhaul of its business, cutting costs and jobs and creating a separate business for its [investment bank under the CS First Boston brand](https://www.financedigest.com/5-compelling-reasons-that-you-should-invest-in-branding.html "5 Compelling Reasons That You Should Invest In Branding"). Last week it announced it was [delaying the publication of its annual report](https://www.financedigest.com/euronext-delays-commitment-of-traders-report-until-further-notice.html "Euronext delays commitment of traders report until further notice") following a call from the U.S. [Securities and Exchange](https://www.financedigest.com/vaultbank-exchange-launches-in-beta-opening-security-tokens-for-trading.html "Vaultbank Exchange Launches in Beta, Opening Security Tokens for Trading") Commission. [Credit Suisse](https://www.financedigest.com/credit-suisse-54-billion-lifeline-offers-limited-respite-to-global-banks.html "Credit Suisse billion lifeline offers limited respite to global banks") goes off piste, https://www.reuters.com/graphics/CREDITSUISSEGP-STOCKS/dwpkdzxxovm/chart.png FALLOUT SPREADS Germany’s Bundesbank convened its crisis team on Monday to assess the possible fallout of the collapse of SVB on the local market, even as no [emergency action was foreseen in Europe](https://www.financedigest.com/exclusive-europe-ready-for-baltics-emergency-switch-off-from-russian-grid.html "Exclusive: Europe ready for Baltics emergency switch-off from Russian grid"). Europe’s STOXX banking index fell 5.8% and was on [track for its biggest two-day fall since March](https://www.financedigest.com/the-nasdaq-100-on-track-to-have-its-best-week-since-march-2010.html "The Nasdaq 100 On Track to Have its Best Week Since March 2010") 2022, soon after Russia invaded Ukraine. [Shares in Germany’s](https://www.financedigest.com/kuehne-raises-lufthansa-stake-to-17-5-as-germany-sells-remaining-shares.html "Kuehne raises Lufthansa stake to 17.5% as Germany sells remaining shares") Commerzbank fell as much as 12.7%. Earlier on Monday, the [Bank of England](https://www.financedigest.com/bank-of-england-fines-former-tsb-executive-over-2018-it-failure.html "Bank of England fines former TSB executive over 2018 IT failure") facilitated a private sale of the UK arm of SVB to HSBC in a move which would protect deposits without taxpayer support (Reporting by Paul Arnold, Chiara Elisei and Noele Illien, writing by John Revill; Editing by Rachel More, Elisa Martinuzzi and Emelia Sithole-Matarise) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---