Switzerland: Financial Sector Stability Assessment; imf country Report 14/143; April 16, 2014

2 
INTERNATIONAL MONETARY FUND
CONTENTS 
GLOSSARY ________________________________________________________________________________________ 4 
EXECUTIVE SUMMARY ___________________________________________________________________________ 6
STRUCTURE AND RECENT PERFORMANCE OF THE MACROECONOMY AND FINANCIAL 
SYSTEM __________________________________________________________________________________________ 10
A. Financial Structure, Macrofinancial Developments, and Risks _________________________________ 10
B. Financial Sector Structure ______________________________________________________________________ 12
C. Cantonal, Raiffeisen, and Private Banks ________________________________________________________ 15
FINANCIAL SECTOR RESILIENCE _______________________________________________________________ 17
A. Banking Sector Stress Test _____________________________________________________________________ 17
B. Insurance Sector Stress Test ___________________________________________________________________ 19
SYSTEMIC RISK SOURCES AND MITIGATION _________________________________________________ 22
A. Contagion and Systemic Risk Sources _________________________________________________________ 22
B. Macroprudential Policy Framework ____________________________________________________________ 26
FINANCIAL SECTOR OVERSIGHT _______________________________________________________________ 27
A. Banking ________________________________________________________________________________________ 27
B. Insurance ______________________________________________________________________________________ 28
C. Securities ______________________________________________________________________________________ 31
D. Financial Market Infrastructures _______________________________________________________________ 32
E. Financial Safety Nets, Crisis Management, and Resolution Framework ________________________ 35
F. Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) ___________________ 38 
FIGURES 
1. Total Mortgages _______________________________________________________________________________ 11
2. Real Residential Real Estate Prices ____________________________________________________________ 11
3. The Swiss TBTF Capital Regime ________________________________________________________________ 14
4. Risk-Weighted Assets/Total Assets ____________________________________________________________ 14
5. Market Shares in Domestic Mortgage Loans __________________________________________________ 15
6. Global Top 20 Banks by Assets Under Management __________________________________________ 17
7. Capital Measures of Large Banks ______________________________________________________________ 20
8. Banking Sector Stress Test Results—Large Banks CET1 Ratio __________________________________ 21
9. Marginal Contribution to Systemic Losses of Swiss Financial Institutions _____________________ 23
10. Switzerland: Contagion Risk Analysis of Swiss and Global G-SIFIs ____________________________ 24
11. Swiss Financial-Sovereign Contagion _________________________________________________________ 25
12. Landscape of Systemically Important FMIs in Switzerland ____________________________________ 33
13. Simplified Legal Structure SIX Group AG _____________________________________________________ 34