Switzerland

The Swiss financial system has navigated turbulent times since the 2019 FSAP. The COVID 19 pandemic, geopolitical conflicts, and the collapse of Credit Suisse (CS) in 2023—previously the second largest G-SIB relative to domestic GDP in the world—have tested the resilience of the Swiss financial center and the economy. Financial stability has been maintained, even though the government-assisted merger between UBS and CS, entailing significant contingent fiscal liabilities, has undermined the credibility of the Too-Big-To-Fail (TBTF) regime and revealed gaps in supervision, resolution, and crisis management in Switzerland.