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

Official support 
74. The regime does not explicitly establish arrangements for exceptional support. 
Nonetheless, the Federal Constitution allows in exceptional circumstances the implementation of 
extraordinary measures. Ex ante approval is required from Parliament’s financial committee, for 
financial support of Sw F 500 million or above. Under its published policy, the SNB can provide 
Emergency Liquidity Assistance (ELA) to domestic banks, subject to sufficient collateral being 
available and the bank being deemed solvent (on which an opinion is sought from FINMA) and 
systemic. The SNB has undertaken significant preparations with the two large banks to enable it 
to take mortgages as collateral. It is recommended that the SNB review its framework and 
operational capacity to make ELA available at short notice to other banks, and review its 
communication policies to ensure that ELA could remain covert when required.
13
Deposit Guarantee Scheme 
75. Esisuisse is a privately run, ex-post funded, narrow pay box scheme. It cannot be 
used to support resolution measures, such as a transfer of deposits to another bank. Esisuisse 
must collect from its members the funds to pay out insured deposits within 20 days of a failure. A 
FINMA appointed liquidator is responsible for determining and making insurance payouts, with 
the aim (but not the obligation) to pay insured deposits within 30 days. In practice payouts have 
taken significantly longer. All licensed banks and securities dealers (including branches) in 
Switzerland are members, and all deposits booked in Switzerland up to Sw F 100,000 are 
10
Including the flexibility required by KA (5.1) to be able to depart from pari passu treatment of creditors for 
certain reasons.
11
The bail-in powers are currently only set out in a FINMA ordinance, and not in primary legislation. 
12
The current modalities require the bridge bank to be owned by the failed bank, which may undermine creditor 
confidence. 
13
For example, the SNB should issue guidance on ELA collateral requirements. 

---

SWITZERLAND
INTERNATIONAL MONETARY FUND
37 
preferred and insured.
14
Two deposit-takers with total Sw F 4.9 billion of eligible deposits, 
however, do not have banking licenses and are neither regulated nor members of Esisuisse.