UBP says FINMA liquidity overhaul shifts Swiss banks toward dynamic stress-based management

• Union Bancaire Privee said Swiss regulator FINMA will tighten liquidity management expectations under a new ordinance, LiqO-FINMA, set to take effect on Jan. 1, 2027.
• The bank framed the change as a shift from compliance with static ratios such as the liquidity coverage ratio to more dynamic oversight focused on cash-flow monitoring, stress testing, and depositor behavior.
• It said the new approach aims to ensure banks can keep operating through extreme but plausible confidence shocks, including rapid deposit outflows or market closures.
• UBP added that liquidity risk will become a more direct board-level responsibility, influencing lending, deposit strategy, and expansion decisions.
• It said clients should see no day-to-day change, with the main impact falling on banks’ internal balance-sheet discipline and near real-time liquidity systems.

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