Business reports
Annual report 2024
Introduction
esisuisse can look back on an eventful year shaped by the following topics in particular:
- Supporting members in the implementation of the revised Banking Act and the Banking Ordinance
- Bankruptcy FlowBank SA
Implementation of the revision of the Banking Act and Banking Ordinance
As part of a working group to implement the preparatory measures, cooperation was intensified with the State Secretariat for International Finance SIF, the Swiss Financial Market Supervisory Authority FINMA, the Swiss National Bank SNB, banks and various IT providers. Notably, the requirements for the list of depositors have been explored in greater depth. FINMA’s role in terms of preparation, review and implementation is of key importance to ensure that depositor protection functions as a whole and protected deposits can be paid out on time. We would like to take this opportunity to thank all contributors for their commitment to this common cause.
Bankruptcy FlowBank SA
The Swiss Financial Market Supervisory Authority FINMA has opened bankruptcy proceedings against FlowBank SA on 13.06.2024. Financing by esisuisse was not necessary because the bankruptcy estate had sufficient liquidity to pay out the protected deposits. However, it was possible to apply esisuisse’s internal processes, cooperation with communication partners and the tools used for the deposit insurance call.
Main focus in 2024
Preparatory measures working group
esisuisse’s objective is to make it easier for banks to implement the preparatory measures (Art. 37h para. 3 lit. d. Banking Act) and reduce costs for the industry. esisuisse plays an intermediary role in this. For instance, we have collected questions from the industry (banks, IT providers) relating to the list of depositors so that they could be answered in a consolidated manner. This preparatory work will accelerate and facilitate implementation at banks. esisuisse therefore exchanged views with various stakeholders in a working group. Among other parties, this includes FINMA, the SIF and the SNB. Finnova, Avaloq and Entris Banking provide valuable input with respect to technical expertise. We also brought in experts with specific experience from Switzerland and abroad.
Webinar no. 3 «Preparatory measures»
On 02.09.2024, esisuisse held the «Preparatory measures» webinar, aimed at members, associations and financial service providers, in German and French to inform participants about the current status, outline which banks are affected by «Infrastructure & Processes» and present the next steps as well as the timeline. In total, 435 people from 221 institutions took part in the webinar.
The Swiss Financial Market Supervisory Authority FINMA closed FlowBank SA on 13.06.2024. The bank had total assets of approximately CHF 680 million, over 22 000 client accounts and around 140 employees worldwide. The institution had the liquid funds necessary to pay out all protected deposits. As a result, esisuisse did not have to provide any liquidity. This situation was significantly determined by the fact that, in Switzerland, the remaining liquidity of the closed bank is used to pay out protected deposits. As a protective measure, all banks must hold assets in Switzerland equal to 125% of the preferential deposits. This is intended to ensure that all preferential deposits are covered in the event of a bankruptcy. Following FINMA’s announcement, esisuisse adhered to its standard procedures, e.g. by updating the website and FAQs, creating additional communication material and holding refresher training with the call centre.
IADI and EFDI
esisuisse plays an active role in both the International Association of Deposit Insurers (IADI) and the European Forum of Deposit Insurers (EFDI). In November 2024, esisuisse CEO Gregor Frey was reelected to the IADI Executive Council. The aim of this international commitment is to further increase understanding of Swiss deposit insurance and to create acceptance. These activities are of key importance in anticipating future regulatory trends and being able to influence them.
5-country meeting
In November, the 5-country meeting in Bern promoted knowledge-sharing between deposit protection schemes in German-speaking countries. Sharing expertise on a regular basis helps to ensure that options for organisational and procedural optimisation can be continuously explored and that Switzerland can benefit from any experience with bank closures abroad.