2023-09-14 04:17:58
This philosophy perhaps has advantages and undoubtedly corresponds to a Swiss culture of consensus and consultation rather than sharp and authoritarian hierarchy. But it has a very real cost. Finma is the caricature of this. Terrifying for the small establishments it controls, the authority lacks teeth when it comes to the larger ones. It will certainly be strengthened, as the Credit Suisse crisis has shown its limits and its shortcomings. However, it is doubtful whether this is enough. How will a Finma, even armed and armored, be able to impose itself if necessary in the face of UBS, the only international systemic bank in the country, whose slightest sign of faltering risks being harmful for everyone?
Since it is systemic, the banking case is the most worrying. But this is not the only consequence of this Swiss approach to regulation. It is paid for in terms of competition and therefore prices, and all consumers suffer from it. In a period of inflation, this is even more damaging. While the new law on cartels discreetly plans to soften the power of the Competition Commission, whose credibility has already taken a hit since the takeover of Credit Suisse by UBS without its approval, we can be concerned. And to say to ourselves that we are condemned to despair in the face of the relative weakness of certain authorities.
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