Crisis management group

A cross-border financial crisis requires effective international coordination of the parties involved in order to overcome it. Crisis management groups (CMGs) are one vehicle for this. These groups discuss, for example, crisis management, work on recovery and resolution planning and the assessment of the resolvability of global systemically important institutions.

The “FSB Key Attributes of Effective Resolution Regimes for Financial Institutions” require, among other things, that the authorities in the home countries and most important host countries of global systemically important financial institutions maintain CMGs. The aim is to be better prepared for a cross-border financial crisis and to facilitate crisis management and resolution.

FINMA has set up a crisis management group for UBS, which meets at least once a year. In addition, it regularly organises a college on crisis management and resolution planning for supervisory and resolution authorities from Asia, as UBS has a large local presence in these markets.

SIX x-clear is recognised as an internationally systemically important central counterparty in accordance with the FSB standard. FINMA has therefore also established a crisis management group (CMG) for SIX x-clear.

There are similar efforts in the insurance sector. FINMA has also started to establish crisis management groups and hold crisis management colleges for the major Swiss insurance companies with an international focus.