The Swiss Financial Market Supervisory Authority (FINMA) has completed its annual assessment of the emergency and recovery plans for domestically systemically important banks PostFinance, Raiffeisen, and ZKB.

ZKB's emergency plan has been deemed implementable for the first time.

Systemically important banks are required to submit an emergency plan to FINMA annually for assessment, outlining how they would maintain their systemically important functions in the event of bankruptcy risk. Systemically important functions include short-term lending operations (Raiffeisen and ZKB) as well as deposit-taking and payment transactions (PostFinance, Raiffeisen, and ZKB).

FINMA has confirmed for the first time that ZKB's emergency plan is ready, as ZKB issued additional loss-absorbing capital in the form of loss bonds in 2023. Other requirements have been met.

FINMA still considers PostFinance's emergency plan as not yet ready. PostFinance has not yet met the requirements regarding additional loss-absorbing capital, but has now submitted a binding plan to establish these funds.

UBS is revising its crisis preparedness as it has acquired Swiss Credit. Subsequently, the bank will submit its resolvability plan as well as recovery and emergency plans to FINMA for review. FINMA will then assess UBS's crisis planning and report separately.