With the publication of the Risk Monitoring, the FINMA It creates a climate of transparency for supervised institutions and the public regarding the fulfillment of its legal mandate. The recent 2025 report provides an overview of the risks that FINMA currently considers most relevant for supervised institutions (insurance companies, banks, asset managers, etc.).
Most of the risks identified by FINMA in recent years remain at a high level. The arrows indicate changes compared to the previous FINMA Risk Monitoring: the risk has increased (↑), remained unchanged (→), or decreased (↓).
Risks relating to real estate and mortgages (→)
Since the 2024 publication of FINMA's risk monitor, the Swiss real estate market's momentum has slowed, but the risks of overheating remain high. Some banks continue to grant mortgages using unsustainable lending criteria. Valuation risks also exist, as real estate prices could decline, particularly in the commercial sector, where structural changes (e.g., teleworking) increase the risk of vacancy for office space. Supervisory priorities: FINMA uses its supervisory tools to understand the lending criteria of institutions experiencing challenges and, if necessary, orders additional capital. In this area, FINMA will continue to monitor the application of principles-based regulation and, depending on the evolution of risks, will consider rules-based regulation.
Credit risk in relation to other receivables (→)
Declining earnings and declining market valuations could translate into losses on Lombard loans and corporate loans, particularly if market conditions change unexpectedly and timely settlement of transactions becomes more difficult. Supervisory priorities: FINMA closely monitors the positions of leveraged finance UBS Bank, including following the acquisition of Credit Suisse. He conducts supervisory discussions and on-site reviews of business with corporate clients in Switzerland and monitors Lombard lending transactions, placing particular emphasis on risks that could arise from concentrated or illiquid collateral.
Market risk: credit spread risk (→)
An increase in risk premiums for government or corporate bonds could lead to significant losses in the portfolios of supervised institutions. This could undermine profitability and trust in the institutions. Supervisory focus: FINMA examines this risk as part of regular analyses of the loss potential of larger institutions.
Liquidity and refinancing risks (→)
A loss of investor confidence can lead to a rapid outflow of liquidity and trigger a downward spiral, further worsening the bank's liquidity situation and potentially destabilizing the entire financial system. Supervisory priorities: FINMA continuously monitors liquidity and refinancing risks and conducts analyses both regularly and as needed. Furthermore, FINMA periodically reviews compliance with the special provisions applicable to systemically important banks.
Market access (→)
Restrictions on access to important foreign markets, particularly in the European Union (EU), may impact the earnings situation of Swiss institutions. Developments in market access for cross-border activities continue to be plagued by significant legal uncertainty. Supervisory focus: FINMA supports the Swiss authorities in their efforts to achieve full equivalence.
Money laundering (→)
Violations of due diligence and reporting obligations can have legal consequences both in Switzerland and abroad and cause significant reputational damage. Clients from high-risk countries, in particular, continue to pose a greater risk. Furthermore, money laundering risks in the cryptocurrency sector are increasing. Supervisory focus: As part of numerous on-site inspections, FINMA verifies compliance with money laundering due diligence obligations. The focus is on risk tolerance and risk management at institutions managing relationships with politically exposed persons or high-risk government-related clients.
Sanctions (↑)
High risks have been identified in connection with trade restrictions (goods sanctions). The provision of certain related financial services and the provision of financial resources are prohibited and pose a risk of sanctions violations for financial intermediaries. Legal and reputational risks for financial intermediaries handling clients subject to foreign sanctions have increased significantly. Since last year, these risks have been particularly exacerbated by the sanctions against Russia. Supervisory priorities: In connection with the sanctions imposed on Russia, FINMA has further expanded its database and is conducting on-site reviews of several exposed supervised institutions, as well as conducting investigations as part of sanctions management.
Outsourcing (→)
The outsourcing of critical functions to third-party providers remains a key source of operational risk in the financial sector. Disruptions or disruptions at third-party providers, particularly in the cloud services sector, can have serious repercussions on the stability of the Swiss financial market. Supervisory priorities: FINMA monitors outsourcing risk, among other things, through specific on-site inspections of both supervised institutions and service providers and by evaluating supervisory and audit data.
Cyber-risks (→)
The Swiss financial sector continues to be a regular target of cyberattacks. Weaknesses in IT infrastructure, insufficient security measures, and a lack of awareness increase institutions' vulnerability. Cyber incidents involving outsourced services and functions remain significant. Supervisory priorities: FINMA will focus on data-driven supervision and strengthen its assessment of the maturity of supervised institutions' cyber risk protection mechanisms using appropriate tools, such as scenario-based cyber exercises.
