The Swiss Bankers Association (SBA) offered both praise and criticism for the too-big-to-fail package presented by the Federal Council on Wednesday and submitted for consultation.

The SBA supports targeted improvements to liquidity provision and the resolution capabilities of systemically important banks and acknowledges the Federal Council’s efforts to ensure a proportionate approach, according to a statement.

«Too Extensive»

«However, the package of measures remains too extensive. The crisis of a single bank does not justify blanket tightening of regulation for other banks,» the SBA said.

The introduction of a new accountability regime for senior executives is welcomed in principle. However, the association cautioned: «This must not lead to purely formal and costly additional regulation.»

«Significantly Expanded Powers»

The SBA also issued a strong warning that Finma, «with its significantly expanded powers for early intervention, sanctions and intervention in ordinary business activities,» could become a «super-regulator».

«Additional powers alone do not lead to better supervision,» the banking industry association said, arguing instead that the «focus should first be on the consistent application of existing instruments». New instruments would have to make a clear contribution to financial stability, be proportionate and comply with the principles of the rule of law.

The SBA also pointed out that other financial centers are currently «reducing regulation and taking targeted steps to strengthen their competitiveness».

The Federal Council’s 30 measures should therefore be assessed as an overall package. «What matters is their cumulative impact on the financial center and the economy.»

The SBA now intends to conduct a more detailed analysis of the proposals.