Business reports
Annual report 2023
Introduction
We reflect on an eventful year, shaped by the partial revision of the Banking Act (BankA) taking effect and the events related to Credit Suisse. esisuisse and the deposit insurance scheme were therefore more of a public focal point this year than usual. Not only did we have more enquiries regarding the regulatory changes that came into force on 01.01.2023, but bank customers, employees and media were also looking for more information on depositor protection due to events surrounding Credit Suisse in March 2023. esisuisse was able to handle the large number of enquiries while helping to raise awareness about depositor protection. However, the deposit insurance scheme did not need to be activated.
Together with the Swiss National Bank (SNB) and SIX SIS AG (SIX), we were able to secure 50% of the members’ contribution obligation («ex-ante financing») towards esisuisse on time through pledged deposits in a collateral account or securities in a securities account. We would like to take this opportunity to thank SNB and SIX for the successful collaboration. You can find more information about the new collateral in the chapter «Contribution obligation and collateral».
Main focus in 2023
esisuisse was not formally involved in UBS’s takeover of Credit Suisse. However, this event brought depositor protection to the awareness of the public, the media and politicians in the first half of 2023. esisuisse helped to provide clarifications on the Swiss scheme. The media played a key role in this. esisuisse succeeded in showing that depositor protection in Switzerland is doing well in terms of collateral due to the 125% rule. Accordingly, every bank must hold unencumbered and easily realisable assets located in Switzerland amounting to 125% of the protected and preferential deposits as coverage.
esisuisse is contributing to the ongoing implementation of the revision of the Banking Act and to further developing and optimising the current scheme. The future requirements of a cashless and digitalised society and high short-term liquidity needs must be taken into account to a greater extent, particularly with regard to the speed of payout. Compliance with and monitoring of the 125% rule is also a key aspect of the Swiss scheme. As such, esisuisse once again raised these issues with the regulator and the supervisory authorities following the events regarding Credit Suisse.
The revised Banking Act and the revised Banking Ordinance took effect on 01.01.2023. All members were required to provide esisuisse with their collateral by 30.11.2023, within the statutory implementation period. The office assisted members throughout the complex process of choosing a model (loan model, securities model or SNB collateral account model), contractual and operational setup and regulatory reporting. All members provided their collateral on time.
After contributions from the ASTON BANK SA case were reimbursed to members in 2022, a special audit was carried out by an audit company in 2023, as stipulated in the self-regulation.
esisuisse was able to further raise its profile in both the International Association of Deposit Insurers (IADI) and the European Forum of Deposit Insurers (EFDI). esisuisse was a sought-after expert on the events relating to Credit Suisse and what it meant in terms of deposit insurance.
At IADI, the revision of the global deposit insurance standards («Core Principles») was interrupted just before internal work was completed due to the events in the USA and Switzerland in spring. Following a reassessment of the regulation of systemically important banks and the consequences for all medium-sized banks, work on the IADI «Core Principles» will continue in 2024. The events also sparked discussions on a global level regarding the role of deposit insurance in general, its contribution and possible improvements.