SRB, EBA and ECB Banking Supervision statement on the announcement on 19 March 2023 by Swiss authorities

Swiss authorities took a comprehensive set of actions to ensure financial stability on March 19, 2023 in the context of the acquisition of Credit Suisse by UBS, which was welcomed by the Single Resolution Board, the European Banking Authority, and the European Central Bank Banking Supervision. (eventid=20188 with an emergency regulation by the Swiss Federal Council and eventid=20185 with the Swiss FINMA approval of the merger of UBS and Credit Suisse). The European banking industry is seen as robust, with high levels of capital and liquidity. In the case of a troubled bank, the sequence in which shareholders and creditors should incur losses has been set, with common equity instruments being the first to absorb losses, followed by Additional Tier 1. This approach has been regularly adopted in prior circumstances and will continue to guide the activities of the SRB and ECB banking supervision during crisis interventions. Additional Tier 1 is and will continue to be an essential component of European banks‘ capital structures.