Switzerland's financial regulator, the Swiss Financial Market Supervisory Authority (FINMA), has found the emergency plans of two of Switzerland's major banks, Zürcher Kantonalbank (ZKB) and Postfinance, to be insufficient. FINMA is not certain if the two banks will be able to continue to operate in case of a crisis. ZKB's emergency plan is not yet ready to implement as the bank has not reserved sufficient capital for recapitalization, while Postfinance "must realign its emergency recapitalization strategy," according to FINMA. The two banks are among Switzerland's five "systematically important banks," along with Credit Suisse, UBS, and Raiffeisen. The assessment is based on their crisis planning documents submitted in 2022 and evaluated at the end of the year. It does not take into account the merger of Credit Suisse and UBS.

(By Lubomir Tassev)