What Changed
- Implementation of interest rate shocks recalibrated by the Basel Committee in July 2024.
- Incorporation of findings from FINMA's ex-post evaluation published on 26 November 2025.
- Updated supervisory framework giving greater account to how interest rate risks affect banks' revenues.
The Swiss Financial Market Supervisory Authority (FINMA) has launched a public consultation concerning the partial revision of FINMA Circular 2019/2, titled 'Interest rate risks – banks'. This regulatory update directly impacts banking institutions operating in Switzerland under FINMA supervisory oversight, specifically regarding the regulatory standards they must apply to measure, manage, monitor, and control interest rate risks within their banking books.
The proposed partial revision addresses two key developments stemming from international supervisory updates and domestic regulatory evaluations. First, the revision implements the updated standard interest rate shocks for measuring interest rate risks in the banking book, which were recalibrated by the Basel Committee on Banking Supervision in July 2024. Second, FINMA is incorporating concrete findings from its ex-post evaluation of Circular 2019/2, an evaluation report previously published on 26 November 2025.
By updating Circular 2019/2, FINMA aims to reflect its updated supervisory practice concerning qualitative and quantitative risk requirements for banks. A central focus of this partial revision is that greater account will now be taken of how interest rate risks affect banks' earnings and revenue streams, ensuring a broader approach to monitoring exposure alongside traditional balance sheet metrics.
Publication and Regulatory Timeline
FINMA publicly released the notice initiating the consultation process on 4 November 2026. However, the provided source material does not state the closing date of the consultation phase, nor does it provide concrete dates for entry into force or formal application of the revised circular.
Verification and Source Information
Legal professionals, compliance officers, and institution representatives following Swiss banking regulation can consult official channels for updates. FINMA lists spokesperson Serkan Isik (Phone +41 (0)31 327 95 59, email [email protected]) as the contact point for inquiries regarding this consultation process.
Who May Be Affected
Banks subject to Swiss financial market supervisory authority (FINMA).
Cross-Border Context
Implements global banking standards set by the Basel Committee on Banking Supervision (July 2024 recalibration) into Swiss federal supervisory rules.
What to check next
- Consultation deadline and formal submission guidelines published by FINMA.
- Final text of the revised circular and its effective entry-into-force date.
This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.