The Swiss National Bank (SNB) places the entire responsibility for Credit Suisse’s collapse on the bank’s management. In an interview with Le Temps, SNB Chairman Thomas Jordan stated that the collapse resulted from “bad decisions” made by management.
According to Jordan, the Swiss authorities were “well prepared” and took steps to prevent a wider financial crisis. The takeover of Credit Suisse by UBS last year was the best option available in that situation.
Jordan emphasized that rescuing banks is not within the SNB’s mandate. This decision lies with politicians due to the involvement of public funds.
Despite the collapse, Jordan believes it’s crucial to learn from this event. The SNB, the government, and the financial regulator FINMA should collaborate to strengthen banking regulations.
The government has already proposed stricter capital requirements for UBS and other major banks. However, the specific amounts haven’t been determined yet.
