This package considerably lessens the probability of a big bank crisis and the ensuing need for state support in such a crisis – which would create an intolerable strain in terms of regulatory and fiscal policy – and at the same time restores market discipline. We need to be aware that regulation is never implemented without some cost to those regulated. However, fears about the extent of the potential repercussions are in my view unfounded, not least because consideration has been given to the costs involved during the drafting of the new rules. In particular, the newly introduced convertible capital will contribute to limiting the costs of stricter capital adequacy requirements. What is more, the organisational measures do not constitute excessive interference with the freedom of scope and responsibility enjoyed by a bank’s management. Measures of this kind can only be subsidiary in nature. This means that the regulatory objective is not exceeded. The increased stability brought about by this package will help not only Switzerland but also our entire financial centre to emerge from the latest crisis significantly stronger than before. What happened to UBS may not happen again. The proposed amendments to the regulations will also soon create legal certainty for the banks and allow them to plan concretely, while at the same time promoting the reasonable, long-term development of the financial centre. There is no doubt about the positive long-term consequences for the entire Swiss economy in terms of income and employment.

Furthermore, a look at the various regulatory packages in their entirety shows that the future requirements for internationally active, systemically important financial institutions will be designed differently at global level. Ultimately, however, they will differ in rigour only as far as the respective national regulators deem necessary in response to country-specific risks. Is the Swiss package of measures being introduced too quickly? A third objection concerns the pace of the regulatory reforms. Compared with other countries, the implementation of the Swiss package of measures is regarded as too hasty in some quarters. One concern is that significant aspects have not been properly considered when drafting the package, with the ultimate consequence that the TBTF problem is not tackled effectively. First of all, it is important to remember that the latest crisis reached its peak some three years ago. It is therefore entirely inappropriate to refer to the Federal Council’s proposal as hasty. On the contrary, the committee of experts worked intensively on drawing up a proposal supported by all groups involved. The administration conducted a thorough analysis and carried out an extensive consultative process. The Federal Council has thus been able to put forward a sophisticated package of measures. This method of proceeding is in keeping with the Swiss tradition of taking the necessary action while avoiding snap decisions. However, actually implementing these rules will take some time. Because of the pressing need for reform in Switzerland, it is not practicable to wait for the international bodies to complete their work in this area.