Press Release

Too big to fail issue: PostFinance is a bank too big to fail

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The Swiss National Bank (SNB) has rated PostFinance as a bank too big to fail. The reasons given were the financial institution’s significant status in domestic deposit services and its strong position in payment transactions in Switzerland. The classification of the bank as too big to fail underlines PostFinance’s importance for the Swiss financial system and contributes to its stability and a robust Swiss economy.

In August 2014, the SNB put a procedure in place to assess whether PostFinance is too big to fail and which of its functions are of systemic importance. In its decision of 29 June 2015, the SNB declared PostFinance Ltd as a financial group to be a bank that is too big to fail. This underlines the importance of PostFinance for the Swiss financial market and is another milestone in the bank’s long-standing success story.

Leading Swiss financial institution

With total assets of 116 billion francs as at 30 June 2015 and as the market leader in payment transactions, PostFinance is one of the leading financial institutions in Switzerland. According to the Banking Act, banks are considered too big to fail if their failure would significantly damage the Swiss economy and financial system. To determine systemic importance, the size, interconnection with the financial system and the economy, as well as the short-term substitutability of the services provided by the bank are measured.

Market leader in payment transactions

In its decision, the SNB emphasized PostFinance’s significant status in domestic deposit services and its strong position in payment transactions in Switzerland. From the point of view of the Swiss economy, these systemically important functions are indispensable and could not be replaced in the short term. As a next step, PostFinance, along with FINMA, will begin to implement the specific requirements regarding equity, liquidity, risk concentration and the development of contingency plans.

Information

Johannes Möri, Media Spokesman PostFinance, 058 338 30 32.