Switzerland plans stricter accountability rules for bank executives

Switzerland’s Federal Council wants to hold bank executives more accountable and reduce risks linked to high bonuses, SRF reported on Wednesday. It has opened the proposals for consultation.

The measures are a response to the collapse of Credit Suisse and aim to close gaps in the country’s “too big to fail” rules. They are also intended to give authorities better tools for dealing with troubled banks.

The government wants to introduce an accountability regime in the Banking Act for banks with more than 250 employees. The measure is intended to improve corporate culture and the way banks handle risks.

Under the proposals, bonus incentives for excessively risky behaviour would be eliminated. A multi-year blocking period would apply to the partial payment of variable compensation for senior executives and very highly paid employees at all banks. Bonuses could also be reclaimed where appropriate.

Finance Minister Karin Keller-Sutter presented the proposals at a news conference.