Swiss Financial System
Swiss Going-Concern Capital
Swiss Going-Concern Capital belongs to Switzerland’s bank-crisis framework, which separates day-to-day prudential resilience from recovery, emergency planning and resolution after a bank becomes non-viable.
Definition
Swiss Going-Concern Capital belongs to Switzerland’s bank-crisis framework, which separates day-to-day prudential resilience from recovery, emergency planning and resolution after a bank becomes non-viable.
Loss-absorption sequence
The framework combines capital and liquidity requirements with recovery planning by banks and resolution planning by FINMA. Instruments intended to absorb losses in resolution sit differently in the creditor hierarchy from ordinary operating liabilities.
Why it matters
The legal point at which capital converts, debt is written down or public liquidity becomes available determines who bears losses and whether critical Swiss functions can continue. Labels alone are insufficient; instrument terms and entity structure matter.
What to monitor
Read FINMA resolution disclosures, capital and liquidity ratios, emergency-plan assessments, holding-company structure and the contractual terms of loss-absorbing debt. Do not assume every liability of a systemic bank has the same resolution treatment.