The pandemic reveals new risks for Swiss institutions in the financial sector, and aggravates existing ones.
The health crisis is not without impact on the financial sector, which it has put under great pressure. The turbulence observed on the market and the resulting decline in liquidity represent a significant short-term risk for players in the sector, according to the Federal Financial Market Supervisory Authority (Finma).
In the second edition of its “Risk monitoring” published on Wednesday, the regulator notes that the Covid-19 pandemic has “strongly impacted the mapping of risks in the financial industry”, resulting in the emergence of new risks for Swiss establishments, as well as the aggravation of existing ones.
For the current year, the market policeman has identified seven main risks facing the Swiss financial center. While in some cases – money laundering and access to foreign markets – the situation is stable, those related to persistently low interest rates, the correction in the real estate and mortgage markets, and cyber attacks have increased.
To these existing risks, Finma has added that of defaults or corrections on business loans and corporate loans abroad, which have become “more likely” due to the erosion of revenues and the results of many firms. affected by the crisis.
The 2020 report also highlights trends likely to influence the sector in the longer term, such as the risks associated with the use of large data files (big data), the aging of the population or even climate change, theme in the spotlight of last year’s score.