Legal basis for banks

The financial market legislation governing banks derives from one federal act, three Federal Council ordinances and three FINMA ordinances.

Banking Act

The Banking Act governs banks, persons pursuant to Article 1b of the Banking Act, private bankers and savings banks. It deals with operating licences and specifies rules for business conduct.

Banking Ordinance

The Banking Ordinance applies to banks, persons pursuant to Article 1b of the Banking Act, private bankers and savings banks; it details the provisions of the Banking Act.

FINMA Foreign Banks Ordinance

The FINMA Foreign Banks Ordinance applies to foreign banks seeking to set up a branch in Switzerland.

Capital Adequacy Ordinance

To protect creditors and the stability of the financial system, banks and securities firms are required to keep sufficient capital available for the business they conduct and the risks they incur and to limit their risks appropriately. This ordinance applies to banks and account-keeping securities firms.

Liquidity Ordinance

This ordinance governs the qualitative and quantitative liquidity requirements for banks.

FINMA Banking Insolvency Ordinance

Applicable to banks, securities firms, fund management companies and central mortgage bond institutions, this ordinance further defines the restructuring and bankruptcy proceedings set out in the Banking Act.

FINMA Accounting Ordinance

The FINMA Accounting Ordinance regulates in particular the preparation of financial statements and the publication of annual reports and interim financial statements.