Further exemptions in the small banks regime are strengthening proportionality in supervisory activities (2024)

The Swiss small banks regime has been a successful supervisory model since 2019 and is unique worldwide. Small, well-capitalised, financially sound banks and securities firms benefit from simplified requirements for calculating and disclosing the required capital and liquidity, as well as from regulatory relief under the FINMA circulars. The small banks regime significantly reduces administrative requirements for the institutions concerned, while participation is voluntary.

FINMA further extended the available relief for participating institutions. For example, when the final stages of Basel III are introduced, these institutions will have less work in implementing the new rules because they will benefit from relief in calculating the required capital. In addition, FINMA announced that institutions in the small banks regime will be completely exempt from the applicability of the new Circular 2026/1 "Nature-related financial risks". Participants in the small banks regime are less exposed to these risks than larger institutions. As at the end of 2024, 55 small banks and securities firms were participating in the regime. One institution was newly admitted to the regime during the year under review, and there were no withdrawals.

(From the Annual Report 2024)