FINMA pursues a range of initiatives so that it can ensure that implementation of banking regulation is structured as proportionately as possible. The small banks regime exempts banks and securities firms in categories 4 and 5 that are particularly liquid and well capitalised from certain supervisory requirements.
The small banks regime exempts Category 4 and 5 banks that fulfil qualified requirements from certain supervisory requirements. FINMA approved 64 institutions to participate in the regime when it came into force on 1 January 2020.
FINMA strives to regulate in a manner that is both proportionate and distinguishes appropriately between different risks and business types. One important milestone is the small banks regime.
FINMA’s supervision and regulation have long been guided by the principles of efficiency and proportionality. In recent years it has systematically incorporated the principle of proportionality into its circulars and, particularly for smaller institutions, introduced various exceptions and relaxations.
One of the financial sector’s strengths is its diversity. Small banks and microbanks should be given every chance to continue operating. FINMA is therefore committed to identifying unnecessary obstacles and costs for small banks and eliminating them where possible.