The Swiss Federal Council has approved a series of stricter regulations for systemically important banks. Under the measures, these large banks will be required to “build up more capital, meet more stringent liquidity requirements and improve their risk diversification.” To meet this goal, the council is proposing tax measures to promote the issue of bonds, contingent convertible bonds (CoCos) in Switzerland, as well as to boost the Swiss capital market. The rules also include regulation of the remuneration of those systemically important banks that have to be bailed out with state aid.

Click here to read the release from the Federal Authorities of the Swiss Confederation.