This year marks the XNUMXth anniversary of FINMA's founding. Let's take a look at the eventful period behind us. How do you judge the evolution of the Supervisory Authority?
«The last ten years have been very eventful for us, as for all the supervisory authorities of the main financial markets in the world. FINMA was set up in an extremely challenging environment. The troubled economic situation that was the victim of the financial crisis, the tax disputes and the related and connected challenges have considerably accelerated FINMA's maturation process, which had to grow very quickly. But ultimately, from my point of view, it has managed to establish itself as a credible authority ».
FINMA is in contact with Libra, the association that wants to create the crypto currency promoted by Facebook. From what has emerged, the criteria for approval will be strict. What are your goals for licensing?
“One thing is certain: a project of this type in Switzerland requires authorization. On the one hand, the Swiss legal framework is robust, and on the other hand flexible enough to make it possible to decide, on the basis of existing principles-based legislation, whether an authorization can be granted or should be refused. No preliminary intervention by the legislator is therefore necessary. In projects of this type, it is of central importance to us that the risks are considered appropriately and according to the principle "same risks, same rules".
Do you think that crypto currencies in general can represent a risk for the stability of the financial system?
«It is the responsibility of the Swiss National Bank to assess which companies on the Swiss financial center are considered systemically important. As a supervisory authority, we believe that, if an authorization under financial market law is required, the risks associated with such a project must be adequately considered and similar to the comparable risks of other providers. And this regardless of whether the activities are carried out on the blockchain or in the analog world. At the same time, we proceed against those who, under the pretext of innovation or new technologies, try to circumvent the law. Finma says yes to innovation, but no to abuse ».
Now we are witnessing a proliferation of crypto currencies (we are also thinking of creating the Ticinocoin). Do you consider digital currencies to be full-fledged coins? What is your opinion on this trend?
"We judge digital tokens not on the basis of their denomination, but on their use at an economic level, that is, the economic function they actually perform, an aspect that must be considered from time to time in the individual case. There are various categories of tokens: payment tokens, usage tokens, and investment tokens. Depending on their function, they must be treated differently from the point of view of supervisory law. Making this assessment is our job. Finma is not called upon to decide which idea, which project or which company should be successful. It is the market and consumers who decide ».
Speaking more generally of the stability of the Swiss financial system, do you consider the current regulation adequate?
«The task of the FINMA is to apply the current provisions. And we note that at the moment we are finding an adequate answer for almost all cases. If in certain areas it is necessary to increase or reduce regulation, it must always be decided by politics. Some stability issues are the subject of the legislative procedures still in progress ”.
You recently, together with the SNB, have introduced new restrictive measures for the granting of mortgage loans. Are you worried about the situation on the real estate market?
"Yup. For some time now, we have been calling attention to the increased risks in the mortgage market. As many investors are looking for positive returns, we have seen particularly strong momentum in the investment property segment. However, the risks of oversupply and the threat of a price correction are on the rise, as evidenced by rising vacancy rates. In order to protect the market from shocks, we have been advocating for some time to tighten credit standards in this area. The trade association has in fact adapted its self-discipline in this sense. We will continue to monitor carefully if this produces its effect ».
Now a further decline in interest rates by the National Bank is assumed. Do you think such a move would be sustainable for the Swiss economy?
«Monetary and interest rate policy is the responsibility of the SNB and it is not for the Finma to comment on it. However, the current level of interest rates clearly has an impact on the companies subject to our supervision. In particular, it affects banks which are heavily involved in interest rate differential transactions as well as life insurance companies with long-term commitments. As part of our supervisory activity, we monitor all this with the utmost attention and, if necessary, we take the appropriate measures with the companies concerned ».
Many small Swiss banks are demanding that there be simplified rules for them, considering their size. How did you move and how are you moving with respect to this request?
“Finma works to ensure that small banks in Switzerland have a real opportunity to develop and work profitably. Barriers and unnecessary costs for small banks need to be identified and, if necessary, removed. In general, we have always made a distinction according to the size of the institutions, that is, supervision of small banks is less strict than that of larger institutions. This year, however, we have taken a step forward by introducing a special regime for small but solid and well-managed banks. According to the principle of proportionality of risk and supervision, we grant various facilitations and simplifications in a targeted manner, so that these institutions can save costs ».
