Initiation of consultation on amendments to Liquidity Ordinance

Bern, 10.01.2017 - On 10 January 2017, the Federal Department of Finance (FDF) initiated the consultation on amendments to the Liquidity Ordinance (LiqO). The revision should ensure that the requirements of the international framework agreement Basel III on the net stable funding ratio (NSFR) will be implemented. The consultation will last until 10 April 2017.

Since the LiqO was adopted in 2012, the international liquidity standards of the Basel Committee on Banking Supervision have been incorporated into Swiss law in stages. The liquidity risk management requirements and the liquidity coverage ratio (LCR) requirements have already been implemented. In a final step, this revision should incorporate the requirements of the net stable funding ratio (NSFR) of banks into Swiss law.

In contrast to the LCR, which aims to strengthen the short-term resilience of the liquidity risk profile of banks, the NSFR's goal is the stable financing of banking activities over the long term. Long-term bank investments (e.g. mortgages) should be financed by fund sources which are as stable as possible (e.g. multi-year bonds), thereby avoiding excessive maturity transformation.

The consultation will last until 10 April 2017. The NSFR provisions should enter into force on 1 January 2018.

Address for enquiries

Beat Werder, Head of Communications, State Secretariat for International Financial Matters SIF
Tel. +41 58 469 79 47, beat.werder@sif.admin.ch