The downfall and forced sale of Credit Suisse to UBS—the largest crisis involving a Global Systemically Important Bank (G-SIB) since the Global Financial Crisis—has sparked a new debate as well as anoverhaul of the “Too Big to Fail” (TBTF) regulatory framework. After multiple waves of reports and investigations of the matter, the Swiss federal government presented its proposals for future legislation to the national lawmakers on June 6th, 2025.
This brief reviews the current proposals and debate surrounding Switzerland’s TBTF regulations – focussing on the focal point of increased capital requirements. Furthermore, it considers their economic and foreign policy dimensions, and suggests potential ways to further reinforce its credibility and effectiveness, especially with regards to the resolution framework and stabilisation mechanisms.
