A part of the public Swiss Post group, PostFinance has 2.7 million customers and CHF120 billion ($135 billion) in client assets, making it a “too big to fail” financial institution in Switzerland. However, despite having a banking licence it cannot grant loans or mortgages on its own balance sheet as it is state-owned (subsidised).
The government said on Wednesday it wanted PostFinance to be authorised to grant loans and mortgages. To this end, PostFinance must be separated from the Swiss Post Group and privatised.
Originally the government had proposed lifting the ban on PostFinance granting mortgages and loans and opening up its shareholding structure. During the consultation process, however, a large proportion of those concerned were not happy with this option. Doubts were expressed, in particular about constitutionality, competitive neutrality, federalism and financial market stability.
Change in law
The privatisation of PostFinance will require three major changes to the Postal Act. First, the provision that PostFinance is not permitted to grant mortgages and loans and the requirement that Swiss Post must hold a majority of the votes and shares in PostFinance are to be removed from the Act.
Second, the Act must be revised to free PostFinance from any obligation to render universal public services given its current integration into postal and payment services.
Finally, the government decided to add a provision which would enable the government to support Swiss Post in implementing the “too big to fail” legislation. As a systemically important bank, PostFinance must meet increased capital requirements.
Due to their reduced earning power, Swiss Post and PostFinance are unable to provide the additional capital required by the financial regulator in full and on time.
For this reason, the government, as the indirect owner of PostFinance, must guarantee that it will cover the remaining equity shortfall in the event of bankruptcy. This capitalisation guarantee must be limited in time and amount and remunerated at market conditions.
The Swiss Federation of Trade Unions said on Wednesday it vehemently opposed the privatisation of PostFinance. The institute is a people’s bank with almost three million customers and belongs to the general public as part of Swiss Post, it said.
This content was published on
The only alternative to the UN Palestinian agency’s work in Gaza is to allow Israel to run services there, Philippe Lazzarini, UNRWA Commissioner-General, told reporters in Geneva on Monday.
Study reveals food culture differences between Switzerland and neighbours
This content was published on
Three-quarters of Swiss people consider eating to be a pleasurable, social activity, a new survey reveals. Healthy eating, however, plays a much less important role, it found.
Precious archaeological vases and coins returned to Italian museum
This content was published on
The Italian authorities have recovered over 2,500 precious ancient coins, vases and small sculptures that had been illegally dug up and sold in Switzerland, Eurojust announced on Monday.
PrimeEnergy Cleantech declared bankrupt by Swiss authorities
This content was published on
PrimeEnergy Cleantech has been officially declared bankrupt, the Swiss Official Gazette of Commerce (SOGC) reported on Monday.
This content was published on
The consumption of antibiotics has risen in Switzerland since the Covid-19 pandemic. However, compared to other European countries the Alpine country has one of the lowest levels of antibiotic usage.
Swiss financial watchdog foresees greater uncertainty due to geopolitics
This content was published on
The Swiss financial sector will face greater uncertainty due to the numerous geopolitical conflicts around the world, warns the Swiss Financial Market Supervisory Authority (FINMA).
Swiss museums to mark centenary of death of painter Félix Vallotton
This content was published on
Swiss museums will celebrate the centenary of the death of the artist Félix Vallotton (1865-1925) next year. A major retrospective is planned in Lausanne, his birthplace, in autumn.
Russian mission installs more ‘spy’ antennas in Geneva, Swiss TV report claims
This content was published on
Russian spies are strengthening their presence in Geneva, according to a report by Swiss public television, RTS. Russian officials have placed new satellite dishes on their diplomatic buildings without authorisation.
This content was published on
Switzerland should join NATO, as in the future it cannot rely on its long-standing tradition of neutrality for its defence, John Bolton, Donald Trump's former national security adviser, declared in an interview on Sunday.
This content was published on
A demonstration was held in Geneva on Sunday calling for an immediate end to the war in Ukraine. Around 50 Russians took part in the gathering outside the UN building.
SNB names PostFinance fifth ‘too big to fail’ bank
This content was published on
In August 2014, the SNB began assessing whether PostFinance was too big to fail and which of its functions were of systemic importance. In its decision of June 29, the SNB declared PostFinance to be a bank that was “systemically relevant”. This means that the bank is so important to the wider economic system in…
PostFinance faces renewed criticism by expat Swiss
This content was published on
The expatriate Swiss community has called for equal access to the services of PostFinance, but it stopped short of suing the state-owned company.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.