Reorganization and Bankruptcy of Banks In Switzerland

Abstract

This paper explores main steps of the Swiss Debt Enforcement and Bankruptcy Law for banks and securities dealers. It provides analysis of competences of the Swiss Financial Markets Supervisory Authority FINMA according to current Swiss law on insolvency for banks and securities dealers. FINMA orders and supervises restructuring and insolvency of banks. As Swiss bankruptcy proceedings for banks applies to all assets of the insolvent and bankrupt bank, regardless whether they are located in Switzerland or in another jurisdiction, FINMA is involved in recognition of the foreign insolvency proceedings and satisfaction in foreign proceedings, transfer of the remainder to the foreign bankruptcy administrator, foreign compositions with creditors. The analysis of competences of FINMA during the restructuring, bankruptcy and liquidation of insolvent banks is the main focus of the current article.