Strengthening prevention: Explicit regulatory requirements and an expanded toolkit for the Swiss Financial Market Supervisory Authority FINMA should be used to impose good corporate governance and more accountable risk management on the part of systemically important banks. This includes a senior managers regime (clear allocation of responsibilities) and rules on bonuses (such as retention periods and clawbacks). The introduction of powers for FINMA to impose fines is being examined. In addition, the quantitative and qualitative capital requirements for systemically important banks should be tightened in a targeted way and supplemented with a forward-looking component. This should strengthen the capital base and improve resolvability. Finally, FINMA's options and duties with regard to early intervention should be expanded.

Federal Council report on banking stability