Esisuisse
The association esisuisse was established in 2005 in Basel as a deposit guarantee of Swiss banks and securities dealers established to implement the statutory measures for self-regulation in the case of compulsory liquidation of a financial institution. The association has been operating under the name esisuisse since 2012.
Legal mandate
esisuisse is intended to guarantee the protection of client assets at financial institutions in Switzerland as prescribed in Art. 37h of the Banking Act. In the event of bankruptcy, all members of esisuisse transfer the required amounts to esisuisse within five days, a total of up to 6 billion Swiss francs. Customers receive up to CHF 100,000 for their savings.
Solidarity system
The Banking Act requires all Swiss branches of banks and securities firms to join the self-regulation process in order to secure their privileged deposits. Esisuisse is responsible for this self-regulation. If bankruptcy liquidation is ordered against a bank or securities firm, the other members of esisuisse (all banks and securities firms with branches in Switzerland) provide the necessary funds immediately. The solidarity system is intended to ensure that the customers of the insolvent institution receive their secured deposits paid out within one month. The esisuisse members will later receive their contributions reimbursed when the institute is liquidated.
Bankruptcy of a member
If there are well-founded concerns that a bank is over-indebted or has serious liquidity problems, or if it does not meet the capital adequacy requirements after a period set by FINMA has expired, FINMA may order bankruptcy liquidation and withdraw its license from the bankrupt institution. A schedule of claims is drawn up, which lists all the claims of the creditors . The claims are divided into three bankruptcy classes. They define which creditors will be considered first in the liquidation, which will be taken into account in second and third priority. The first class of bankruptcy includes, for example, employees who have not yet received their wages. The second class of bankruptcy includes, among other things, all privileged bank deposits up to a maximum of CHF 100,000 per depositor and institution. Most of the claims are usually classified in the third class of bankruptcy.
Privileged deposits
The privilege means that these deposits belong to the second bankruptcy class. This is a great advantage when it comes to distributing the available liquidity of the bankrupt institution, since the first and second bankruptcy classes usually only collect a small part of the claims against the bankruptcy estate. The vast majority of claims are normally classified in the third class of bankruptcy. First and second class creditors have a better chance of getting their outstanding debts paid in full.
Are privileged
- Funds in accounts in the customer's name.
- Medium-term notes deposited with the issuing bank in the name of the holder (even if these are claims against the bank made out to the holder).
- Deposits from tied pension provision (pillar 3a).
- Contributions from vested benefits foundations.
- Deposits at foreign branches of the bank.
Are not privileged
- Deposits made out to a holder (and thus not in the name of the bank customer).
- Claims against the bank that are not related to commercial banking or securities trading activities (e.g. claims from the landlord or contractor of a bank or claims from purchase and work contracts with the bank).
- Securities custody accounts: no privileges apply here because securities are kept by the bank but remain the property of the customer.
Secured deposits
A large part of the privileged deposits is covered by esisuisse's legally anchored deposit guarantee system. They are referred to as "privileged and secured". In the event of bankruptcy, esisuisse will provide the money for a quick payment to the authorized creditors within 20 days.
The following deposits at Swiss branches are allowed by esisuisse up to max. CHF 100,000 per customer and institute secured:
- Funds in the customer's name, e.g. B. on private accounts , savings accounts , investment accounts, wage accounts , numbered accounts , deposit accounts and current accounts .
- Medium-term notes deposited with the issuing bank in the name of the holder.
Special features
Esisuisse's deposit guarantee system is impressive because of its simple design. Central principles are regulated by law, but the majority is left to self-regulation by the financial industry. The following aspects show three essential characteristics of esisuisse:
Payout from still available liquidity
A decisive peculiarity of Swiss depositor protection is the priority payment of the available liquid funds to the protected depositors. The remaining funds of the closed institute are used directly to pay out the secured deposits to the customers. It was mostly possible to avoid financing the secured deposits via esisuisse.
Special liquidity
Switzerland provides for special liquidity for esisuisse among members. These must always hold additional special liquidity of CHF 3 billion. This ensures that funds are also available for esisuisse at very short notice in the event of compensation.
125% rule
The statutory 125% rule, according to which protected deposits must be backed by easily realizable assets in Switzerland amounting to 125%, is another essential feature of the depositor protection system. The rule ensures that there is sufficient liquidation assets to compensate for the funds paid out by esisuisse to depositors during the course of the liquidation. The secured deposits paid out are financed retrospectively by the liquidation assets, so that esisuisse and its members do not incur any losses.
organization
The organs of the association are the general assembly, the board of directors, the auditors and the management. The board of directors is led by Urs Gauch (president), the auditors are Ernst & Young and the management is represented by Gregor Frey (managing director).
Member institutes
All banks and securities firms with branches in Switzerland are members of esisuisse. Institutions that belong to a corporate group or a banking group are each individually member. Institutes that are ceasing to conduct business are also considered members of esisuisse. Membership remains valid until it is deleted from the FINMA list “Banks / securities dealers ceasing to operate”.
International networking
esisuisse is represented on deposit insurance bodies in Europe and around the world. Esisuisse is a member of the European Forum of Deposit Insurers (EFDI) and the International Association of Deposit Insurers (IADI).
Web links
Individual evidence
- ↑ SR 952.0 Federal Act of 8 November 1934 on Banks and Savings Banks (Banking Act, BankG). In: admin.ch. Federal Chancellery , accessed on January 30, 2017 .