Rs 952.03 Order From 1 St June 2012 On Equity And Distribution Of Risk Banks And Traders In Securities (Equity, Ofr Ordinance)

Original Language Title: RS 952.03 Ordonnance du 1er juin 2012 sur les fonds propres et la répartition des risques des banques et des négociants en valeurs mobilières (Ordonnance sur les fonds propres, OFR)

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952.03 order on own funds and the distribution of the risks of banks and traders in securities (equity, OFR Ordinance) from June 1, 2012 (Status January 1, 2016) the Swiss federal Council, view the art. 3, al. 2, let. b, 3g, 4, al. 2 and 4: 4, al. 2, and 56 of the law of 8 November 1934 on banks (LB), stop: title 1 General provisions Chapter 1 object, scope and definitions article 1 principle in order to ensure the protection of creditors and the stability of the financial system, banks and traders in securities must have own funds tailored to their activities and the risks inherent in these activities, and limit the latter adequately.
The banks and securities dealers in value cover credit risk, market risk, without counterparty risks and operational risks with their own funds.

Art. 2 object this order regulates: a. capital taken into account; (b) the risks covered by own funds and the level of coverage; c. the allocation of risk, including the limits for the big risks, and the treatment of the internal positions of the Group; d. Special requirements to satisfy the banks of systemic importance.

The federal supervisory authority of financial markets (FINMA) may issue technical performance requirements.

Art. 3 scope of application this order if applies to banks according to the LB and the securities dealers under the law of 24 March 1995 on scholarships (below banks).

RS 954.1 art. 4 definitions for the purposes of this order, means: a. regulated Scholarship: an institution regulated and monitored appropriately in accordance with recognized international standards, which aims the purchase and simultaneous securities sale between several securities dealers and ensures these transactions through a sufficient market liquidity; b. main index: an index that includes all securities dealt with from a regulated exchange (general market index) or a selection the most important of this scholarship securities, or even an index grouping the most important securities of different exchanges regulated; c. regulated firm: company operating in the financial sector, required to comply adequate in terms of own funds requirements, especially in terms of operating risk, controlled according to internationally recognized standards and monitored by a supervisory authority banks traders in securities or insurance; d. title of participation: title representing a participation in the capital stock of a Corporation; (e) equity instrument: title of participation in basic own funds hard or additional as debt instrument on equity additional basic or additional; f. equity approach of the corresponding deduction: approach called "corresponding deduction approach" in the minimum standards of Basel; g. interest rate instrument called : an instrument of interest rates: 1 with a rating of grades 1 to 4, given by at least two rating agencies recognized, 2 benefit a rating of the classes 1 to 4 granted by a recognized rating agency, provided that no other agency rating recognized by FINMA has assigned a rating of a lower class, 3 without a recognized rating agency rating , but with a yield to maturity and a residual duration comparable to securities having a rating of 1 to 4 classes, insofar as securities of that issuer are traded from a regulated exchange or a representative on which market at least three independent market makers each other generally offer courses that are published regularly on a daily basis or4. without rating agency recognized rating (rating), but with an internal rating of the Bank for classes 1 to 4, where the securities of this issuer are traded from a regulated market or a market where at least three independent market makers from each other generally offer daily courses that are published regularly;

h. standard minimum Basel: the documents of the Basel Committee on banking supervision key to calculate the capital required.

The current minimum standards of Basel can be found at the Internet address www.bis.org/bcbs or requested from the Bank for international settlements Centralbahnplatz 2, 4002 Basel.

Art. 5 portfolio of trading banks can hold and manage a portfolio of trading with positions in financial instruments and goods that are held for trading purposes or which are used to cover other positions.
They can assign to the portfolio of trading positions: a. whose marketability is not limited by contractual agreements; forgotten the source. who can be covered in full at any time.

There is intention of trading when the Bank provides: a. hold the short-term positions; b. to take advantage of short-term market price fluctuations; OUC. gains of arbitration.

Positions must be evaluated frequently and accurately. The trading portfolio must be actively managed.

Art. 6 the FINMA rating agencies can recognize a CRA if: a. its scoring method and its ratings are objective; b. She is independent, as his scoring method; c. it makes available its ratings as well as the underlying information; d. publishes its scoring method, its code of conduct, its compensation principles and the main features of its ratings; e. She has sufficient resources; ETF. She is credible, as its ratings.

It publishes a list of recognized rating agencies.
Revokes the recognition of a recognised rating agency if it no longer meets the required conditions.

Chapter 2-building art. 7 consolidation obligation equity and risk diversification requirements must be met not only at the level of each school, but also at the level of the financial group or financial conglomerate (obligation of consolidation).
Consolidation includes all the Group companies active in the financial sector under art. 4 in relation to art. 22 of the order of April 30, 2014, on banks (OB), except: a. interests in the field of insurance, which are consolidated, subject to art. 12, as part of the requirements for the distribution of risk; (b) the management of the collective investment schemes on behalf of investors or the detention of the Foundation's capital of investment firms, that have no obligation to consolidation of collective investments.

If the Bank participates through equity instruments to a company that is not consolidated under para. 2, let. a, these instruments are subject to the approach of the corresponding deduction.
If the Bank participates through equity instruments to a company that is not consolidated in complaints the al. 2, let. b, these instruments are subject to the approach of the corresponding deduction without reference to a threshold.

RS 952.02 new content according to Chapter 4 of annex 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).

Art. 8 types of consolidation and options from the Bank the majority stakes in companies to consolidate are integrated overall.
In the presence of participations held 50% of votes with a second shareholder or associate who himself holds the other half ("joint venture"), the Bank may opt for consolidation according to the method of global integration, the proportional integration method or the approach of deduction.
In the presence of at least 20% minority stakes in companies to consolidate on which the Bank has, directly or indirectly, a dominant influence with other holders, the Bank may choose the proportional integration method or approach of deduction.
The approach of deduction applies to other minority shareholdings.
According to the method of proportional integration, taken into account and the necessary capital, similarly big risks risks, are taken into account in accordance with the rate of detention.
The participations registered according to the approach of the deduction cannot be taken into account in the allocation of risk.
The approach of deduction referred to in paras. 2 and 3 apply without reference to a threshold.

Art. 9 derogatory treatment with the agreement of the auditing company with the agreement of the audit company, the following entries can be treated as equity should not be consolidated: a. the stakes in companies whose influence on the compliance with the provisions on own funds is insignificant because of their size and their activity; b. the significant companies in the group whose period of detention is less than a year.


Investments greater than 50% of the vote can exceptionally be consolidated according to the method of integration commensurate with the approval of the audit company, where it is established by contract: a. that the company held to consolidate support is limited to the share of the Bank; ETB. other shareholders or partners are required, the extent of their share of their support and are legally and financially able to do.

Investments should not be consolidated within the meaning of para. 1 are subject to deduction approach, which applies without reference to a threshold.

Art. 10 special requirements in duly motivated cases, FINMA may exempt fully or partially a Bank of the provisions on own funds and the distribution of the risks on an individual basis, particularly when the conditions provided for in art. 17 OB are met.
FINMA may, with regard to own funds which must be observed at the level of the financial group or financial conglomerate, prescribe additional regarding capitalization bonds regulations for appropriate business placed at the head of a financial or a financial conglomerate group and not monitored on an individual basis.
It may in some cases allow a bank to integrate into its individual States, the Group companies active in the financial sector (preconsolidation), because of their particularly close relationship with the Bank.

RS 952.02 new content according to Chapter 4 of annex 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).

Art. 11 financial subgroups the consolidation obligation applies to any financial group, even when such a group is integrated into a financial group or a financial conglomerate which it depends, and which is already subject to the supervision of FINMA.
FINMA may, in some cases, exempt a financial subgroup of the consolidation obligation, including: a. when the Group companies are active exclusively in Switzerland. ETB. When financial group or financial conglomerate to which it belongs is itself subject to an appropriate consolidated supervision by a supervisory authority of financial markets.

Art. 12 insurance captive in terms of operational risk the Group companies who have exclusive object the internal of the Group (captive insurance) operational risk insurance may, with the approval of FINMA, be consolidated in full like companies of the group active in the financial sector and, if necessary, be the subject of a preconsolidation (art. 10, al. 3).

Art. 13 participations outside the financial sector the maximum limits on investments referred to as a bank in companies outside the financial sector within the meaning of art. 4, al. 4, LB do not apply: a. when such participations have been acquired temporarily as part of a reorganization or rescue of a business; (b) when securities were taken over for the normal duration of a broadcast operation. OUC. When the difference between the book value and the maximum participation limit is entirely covered by own funds freely available.

Chapter 3: Justification and publication of the adequacy of own funds art. 14 proof of funds banks on a quarterly basis attest that they have adequate capital. FINMA determines what must contain proof of own funds.
The proof of own funds on a consolidated basis is presented semi-annually.
Receipts must be sent to the Swiss National Bank within a period of six weeks from the end of the quarter or semester.

Art. 15 bases of calculation the Bank calculates own funds necessary, and taken into account which are reported in the supporting statement of equity, based on the financial statements established according to the accounting requirements of FINMA. This last rule exceptions are related.

Art. 16 publication banks inform the public adequately on their risks and their own funds. The method of calculation of capital taken into account must be able to be inferred clearly from the property accounts.
The private bankers who do not appeal to the public for deposits of funds are exempt from this obligation.
FINMA enacts technical performance requirements. She defines in particular the information that must be published in addition to what appears in the annual financial statements or interim statements.

Chapter 4 Simplified Application art. 17. banks can implement various provisions of this Ordinance and the technical performance requirements issued by the FINMA in a simplified form: a. If they can avoid disproportionate costs; (b) if they ensure that risk management is adapted to their operational activities; etc. If the proportion of minimum own funds compared with the capital taken into account is at least maintained.

Banks ensure the respect of these conditions and document the simplified application procedures.

Title 2 capital taken into account chapter 1 General art. 18 Elements of capital taken into account own funds consist of core capital ("Tier 1 Capital; T1') and complementary ("Tier 2 Capital own funds; T2').
Basic own funds consist of hard basic own funds ("Common Equity Tier 1; CET1') and equity of basic additional ("Additional Tier 1; AT1").

Art. 19 absorption of losses losses are absorbed by the elements of capital according to the following principles: a. losses are absorbed by the capital hard before breaking the additional core capital; b. the losses are absorbed by the additional core capital before charge additional own funds.

If certain instruments of the same component of capital (excluding CET1) do not absorb losses in the same way, he should state this in the articles or the issuance of the instrument.

Art. 20 common requirements for own funds own funds must be paid in full or generated by internal activities to the extent of taking them into account.
At the show, they can not: a. be funded directly or indirectly by granting of credit from the Bank to a third party; b. be offset with claims of the Bank; c. be covered by assets of the Bank.

In case of liquidation, bankruptcy or restructuring proceedings, they must take rank after the debts not subordinated to other creditors.
Capital instruments, which provide for a conditional conversion or a debt write-off for the occurrence of a risk of insolvency (art. 29) not only are taken into account as part of the capital with the status prior to conversion or reduction of the debt. Reserved: a. taking into account collateral requirements for additional capital, in accordance with art. 45, al. 2; ETB. the provisions of title 5 relating to the convertible capital of banks of systemic importance.

Chapter 2 calculation Section 1 Basic own funds hard ("CET1") art. 21 features taken into account can be taken into account in respect of own funds hard: a. the paid-up capital; b. related reserves c. reserves for general banking risks after deduction of latent taxes, in the absence of sufficient funds; d. the profit brought forward; (e) the benefit of the current, limited to the net amount after deduction of the predictable dividend share , where a review meets the requirements of FINMA was made and she carries on a comprehensive income within the meaning of the enforcement provisions of the FINMA based on art. 42 OB or an international standard recognized by the FINMA.

The equity shares held by minorities in consolidated fully regulated companies can be taken into account insofar as they can be in these companies themselves. Excess own funds attributable to minorities, calculated on the basis of requirements including the wheel of own funds and additional own funds, cannot be considered.

New content according to Chapter 4 of annex 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).
RS 952.02 art. 22 criteria to take account of the social capital social capital can be taken into account in the hard core capital: a. If it meets the conditions provided for in art. 20; (b) if it has been directly issued pursuant to a resolution or an authorization from the owners; c. If it is not a commitment to society; d. If it is recorded clearly and separately in the balance sheet in accordance with the requirements governing the preparation of the accounts; e. if its duration is unlimited, unless it be submitted to statutory exceptions or otherwise the Bank contractual commitment; f. in the case of distribution to holders by debiting the distributable reserves without any obligation or privilege; ETG. If holders have no right of priority or privileged in the proceeds of liquidation.


The preferred shares and the capital investments can be taken into account in the hard core capital: a. If they meet the conditions defined in the al. 1; b. If they respond to losses in the same way as social capital in the form of hard core capital; etc. If the shares of the issuer as a limited company are not listed with a regulated stock exchange.

The evaluation of compliance with the conditions laid down in the al. 1 and 2, let. b, FINMA takes into account the legal form of the Bank as well as the specificities of its share capital.

New content according to Chapter 4 of annex 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).

Art. 23 types of social capital social capital is formed, depending on the legal form of the Bank share capital, capital, capital endowment or cash sponsorship for partnerships (private bankers).
FINMA may enact technical implementing provisions concerning the prudential recognition of social capital to the banks.

Art. 24 Endowment capital of banks under public law if cantonal regulations or by-laws provide for a deadline for the endowment of public banks capital, shall not be taken into account in respect of hard core if capital maturity: a. aims to redefine the terms; ETB. does not the reimbursement of the Endowment capital.

Art. 25 capital of private bankers contributions of private bankers capital contributions may be taken into account in the hard core capital: a. if their amount is fixed in a partnership agreement to be approved by FINMA; b. If they are paid or do not give right to participation in the gain in the case of profit sufficient at the end of the fiscal year; etc. If they respond to losses in the same way as a deposit limited partnership.

Contributions of capital can be reduced as part of a procedure involving all the partners with unlimited liability.
The hard core capital may be reduced by a reduction of the contributions of capital if the remaining equity are consistent with the requirements of art. 41 art. 26 share capital if the statutes of the cooperative society, about the capital, a recovery of the shares, that capital can be taken into account in the hard core capital provided that the statutes stipulate that the recovery: a. may be refused at any time and without indication of reasons by the competent bodies; ETB. will take place if the remaining capital of the Bank meets the requirements set out in art. 41. any restriction of the right to the proceeds of the liquidation must: a. be applied equally to all holders of shares; ETB. be prescribed by the statutes.

It is possible to waive a portion of the proceeds of liquidation in favor: a. a public institution or a private institution exempt of taxes; forgotten the source. a central agency within the meaning of art. 17 OB, if the Bank subject to the liquidation is affiliated to the central agency.

The statutes must ensure no distribution to holders of shares, even if they set a ceiling.

New content according to Chapter 4 of annex 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).
RS 952.02 Section 2 equity additional ('AT1") art. 27 criteria to take into account a capital instrument can be taken into account in respect of additional core capital: a. If it meets the requirements set out in art. 20 and 29; (b) if it is unlimited and that the Bank, at the show, there is no hope of repayment or agreement of the regulator in this sense; c. If the Bank is authorized to process a refund five years earlier after the show; d. If, at the show, the Bank says that the supervisory authority will authorize a refund only under the following conditions : 1. the remaining equity to meet the requirements of art. 41, or 2. sufficient own funds of at least equal quality are issued;

e. If there is no characteristic complicating any way whether an increase in the capital stock of the Bank; (f) provided that the distributions to donors by the Bank are voluntary and are held only if distributable reserves are available; ETG. If it is excluded that distributions to donors will increase during the period due to the issuer credit risk.

Equity securities may be taken into account in respect of additional own funds if they meet the conditions defined in the al. 1. the commitments that meet the conditions defined in the al. 1 can be taken into account in respect of core capital extra when they become obsolete upon the occurrence of an event ("trigger") defined by contract, or at the latest during the passage under a lower threshold to 5,125% of the own funds hard, by: a. a debt reduction; forgotten the source. a conversion into hard core capital.

The terms of issuance of a capital instrument related to a conditional debt relief may grant the funder conditional deferred to participate in an improvement of the financial situation of the Bank. This right must not prejudice substantially to the strengthening of the capital base of the Bank at the time of debt relief.
FINMA approved before the issue of a capital instrument: a. the event defined by contract, mentioned in para. 3; ETB. the framework in which the right to participate in the improvement referred to in para. 4 is allowed.

The provisions of art. 21, al. 2, relating to the taking into account of funds own held by minorities in businesses regulated subject to full consolidation are applied by analogy.

Art. 28 availability within the financial group the additional equity issued by a company ad - hoc non-operational ("special purpose entity") are taken into account on a consolidated basis when they are sent immediately and in full, as equal or greater, to the company of the group or an operational entity of the Bank.

Art. 29 risk of insolvency ("point of non-viability, PONV") the issue conditions or the articles of association must provide that in the event of a risk of insolvency, the additional equity will contribute to the reorganization of the Bank through a cancellation of debt or a conversion. In this case, the claims of the creditors will be depreciated in full.
Hard core equity conversion or cancellation of debt must intervene by: a. before the use of assistance from public authorities; forgotten the source. When the FINMA ordered to avoid an insolvency.

With regard to equity securities which are taken into account as additional core capital and have no mechanism of absorption of losses within the meaning of para. 1, the contract or the Statute must provide the irrevocable waiver in the event of insolvency risk, to any privilege compared to the qualified of hard core equity capital.

Section 3 additional own funds ('Tier2") art. 30 criteria to take into account a capital instrument can be taken into account in respect of additional own funds: a. If it meets the requirements of art. 20 and 29, al. 1 and 2; (b) if there is a period of at least five years and that the terms of issue contain no incentive to pay for the Bank; c. If the Bank is authorized to process a refund after five years at the earliest after the show; d. If, at the show, the specific bank that the supervisory authority will allow a prepayment to the following conditions : 1. the remaining equity to meet the requirements of art. 41, or 2. sufficient own funds of at least equal quality are issued;

e. If it is excluded that distributions to donors will increase during the period due to the issuer credit risk.

During the five years preceding the ultimate deadline, taking into account the additional equity capital instruments decreases each year at the rate of 20% of the nominal amount. There is more no taking into account last season.
The provisions of art. 21, al. 2, and art. 28 and 29, al. 1 and 2, shall apply by analogy.
FINMA said in technical implementing provisions conditions taking into account of additional items of additional own funds, particularly in regard to: a. public law banks; (b) the capital contributions of the partners with unlimited liability of private banks toward those who do not meet the requirements set out in art. 25; undisclosed reserves etc.

Section 4 Corrections art. 31 General calculation of the corrections of the capital taken into account must be made in the same way for individual institutions and consolidated financial groups.
The threshold amount of a correction is the value entered in the balance sheet. The anticipated tax effects can be taken into account to reduce the correction:

a. If the tax liability and the corresponding position automatically turn off at the same time. forgotten the source. If this is expressly provided by this order or the technical implementing provisions of FINMA.

FINMA may provide in the technical implementing provisions of the corrections for banks that establish their accounts according to the international standards in this area.

Art. 31aModifications of the day value of own commitments resulting from a change in credit risk Bank during the calculation of the own funds hard, it is required to neutralize all of the profits and losses not made, affecting own commitments due to changes to their current value due to changes in the credit risk of the Bank.
In addition, all value adjustments of commitments derived from the credit risk of the Bank must be neutralized.
The compensation of value adjustments due to the credit risk of the Bank by value adjustments due to the credit risk of counterparties is not allowed.

Introduced by section 4 of Schedule 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).

Art. 32 the core capital deduction hard are to deduct in full equity base hard: a. a carried-over loss and the loss of the current year; b. a need not covered in patches of values and provisions of the current fiscal year; c. 'goodwill' goodwill, including if any was taken into account in the assessment of major holdings in companies of the sector outside the scope of consolidation , and the intangible values, with the exception of mortgage management rights "mortgage servicing rights;" MSR"; d. latent tax claims" deferred tax assets, DTA "which depend on future profitability, compensation with corresponding latent tax commitments are allowed as part of the same tax jurisdiction geographical and material, make exception the DTA resulting from temporal gaps"temporary differences"; (e) in the case of banks using the IRB (art. 77), the amount corresponding to the difference between the losses expected calculated according to this approach, and patches of value according to the minimum standards of Basel; f. products of assignments of receivables in connection with securitization operations 'gain on sale related to securitization transactions'; g. receivables on the balance sheet to pension funds with defined benefits 'defined benefit pension fund assets', in accordance with the relevant regulations of the minimum standards of Basel; h. NET long positions according to art. 52 in own titles of participation that are part of equity base hard, held in own, directly or indirectly, in portfolio trading or outside of it, as long as they have not already recorded on the liabilities side of the income statement; i. participation described in the capital of another company in the financial sector, insofar as it also participates in the capital of the 'reciprocal holdings' Bank; j. as part of the calculation by establishment : net long positions in direct holdings in companies operating in the financial sector, which are calculated according to art. 52 and must be consolidated; k. deductions resulting from an option chosen by the Bank as part of the consolidation provisions contained in art. 7, al. 4, 8, al. 2 and 3, and 9, al. 1 and 3.

Internal Ratings-based Approach art. 33 approach of the deduction if the Bank holds instruments of equity in a company in the financial sector, deductions must be made according to the approach of the corresponding deduction. The value of these instruments will be deducted from the component of the own funds of the Bank that corresponds to the component at a level appropriate to the third-party company.
If the Bank has no capital or has sufficient capital in the corresponding component of the capital taken into account to make the deduction, this will be achieved in the equity component immediately above.

Art. 34 deduction of positions of own equity outside the core capital instruments hard net long positions in instruments of capital in the additional own funds and additional own funds calculated according to art. 52, held its own, directly or indirectly, must be deducted according to the approach of the corresponding deduction.
In the case of the approach of the corresponding deduction according to para 1 instruments of additional own funds, securities of the same issue are not subject to a taking into account limited according to art. 30, al. 2 (depreciation), and nominal values can be offset each other.

Art. 35 deduction based on thresholds the deduction based on thresholds ("threshold deduction") is to deduct the part exceeding the threshold. The threshold is calculated on the basis of the positions of a bank measured a percentage default of its funds own hard basis in accordance with the minimum standards of Basel.
Threshold 1 corresponds to 10% of the hard core capital at the end of all the corrections according to the article 31, al. 3, and 32, let. a to i and k.
Threshold 2 corresponds to 10% of the hard core capital at the end of all corrections according to the art. 31, al. 3, and 32, including any deductions from own funds base hard resulting from the calculation of threshold 1 (under art. 37, para. 1 and 2).
The threshold 3 is determined so that, after taking into account all regulatory adjustments, including the deduction of the amount exceeding this threshold according to art. 40, al. 1, the remaining three positions amount does not exceed 15% of the hard core capital.

New content according to Chapter 4 of annex 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).

Art. 36 approach to determining deduction for the equity instruments the approach of the deduction to be applied under art. 37 or under art. 38, turning to the equity instruments that the Bank holds in a company in the financial sector, is determined by the percentage, calculated according to art. 52, equity securities held by the Bank directly or indirectly in such a company as well as other forms of investment in such securities which, synthetically, to present the same risk (Holdings).
The approach in accordance with art. 38, al. 1, applies to instruments of equity in a company held by the Bank in the form of additional basic or additional own funds own funds and which are deductible from its hard equity in accordance with art. 32, let. i, j and k.

New content according to Chapter 4 of annex 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).

Art. 37 securities in companies of the financial sector to 10%, a bank who holds at least 10% equity in a company in the financial sector in the form of hard core capital, deducted from its own funds components the part exceeding threshold 1 the values entered on the balance sheet of all the instruments of equity it holds in total in all companies of the financial sector. This provision also applies if the Bank holds in a company in the financial sector, only equity instruments that are not hard equity.
The amount to be deducted according to para. 1 is distributed according to the approach of the deduction based on the original relationship between all the equity instruments held by the Bank in the companies concerned before the deduction.
The share of the values entered on the balance sheet added according to para. 1, which is lower than the threshold, is weighted according to risk. The weighting takes place for each component of equity based on its attribution to the Bank or trading portfolio before the deduction.

New content according to Chapter 4 of annex 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).

Art. 38 titles of participation in companies of the financial sector that is more than 10% a bank that holds more than 10% equity in a company in the financial sector in the form of hard core capital, is required to treat without threshold, according to the approach of the corresponding deduction, all instruments of capital additional basic and additional own funds held in this same society.
It must deduct from its own funds hard, both at the level of the calculation by individual establishment as at the consolidated level, the share of the sum of the values entered on the balance sheet for all of the shares held directly or indirectly in the hard core capital of such companies outside the area of consolidation which exceeds the threshold 2.
If the amount calculated according to para. 2 is below the threshold, it is processed according to art. 40. new content according to Chapter 4 of annex 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).

Art. 39. other deductions according to threshold 2


The Bank must separately deduct amounts exceeding threshold 2 in the case of its hard core capital: a. the mortgage "mortgage servicing rights' management rights, etb. Receivables Tax latent "deferred tax assets, DTA' resulting from temporal gaps"temporary differences ". Amounts less than the threshold are treated according to art. 40 art. 40 deductions according to the 3 threshold values of the balance resulting from the approach described in the art. 38, al. 2 and 3, and 39, which are below the threshold of 2, are added together and measured in terms of the threshold 3. The Bank should deduct the amount that exceeds the threshold of 3 of its hard core capital.
The Bank will apply a risk weighting of 250% to amounts below the threshold of 3.

Title 3 own funds Chapter 1 General art. 41 composition own funds comprise: a. minimum own funds; b. equity steering wheel; c. countercyclical steering wheel; ETD. additional own funds.

Art. 42 minimum own funds after the deductions according to the art. 31 to 40, banks must have a minimum level of own funds equivalent to 8% weighted positions ('overall capital ratio") altogether. At least 4.5% of the weighted positions must be covered in the form of basic own funds hard ("CET1 ratio") and at least 6% in the form of original own funds ("core capital ratio").
Weighted positions include: a. the positions weighted according to their risk of credit (art. 49) and weighted positions resulting from transactions not executed (art. 76); b. the risks without matching weighted according to art. 79; c. 12.5 times the minimum capital for the risks of market (art. 80 to 88); d. 12.5 times the minimum for operational risk (art. 89 to 94) own funds; e. 12.5 times the minimum capital for the risks associated with commitments to guarantee to central counterparties (art. 70); f. 12.5 times the minimum own funds for the risk of any adjustments to value of derivatives made due to the credit risk of counterparty (art.) (55) a bank must inform the FINMA as soon as she has more than the minimum own funds according to para. 1. a bank with no minimum own funds according to the al. 1 and 2 does not meet the requirements for equity capital within the meaning of art. 25, al. 1 LB.

Art. 43 wheel of capital banks must hold permanently, in the form of hard core capital, a wheel of own funds amounting to 2.5% of the weighted positions.
Banks with the wheel of own funds is temporarily lower requirements due to unpredictable circumstances as a crisis of the Swiss financial system or international do not violate the requirements for own funds.
When the wheel of own funds is less than requirements, FINMA sets a deadline to remedy this situation.

Art. 44 countercyclical driving the Swiss National Bank may apply to the federal Council of forcing banks to keep also in Switzerland, in the form of hard core capital, a countercyclical wheel corresponding to the most, at 2.5% of the weighted positions so: a. to strengthen the resistance of the banking sector in the face of the risks of excessive credit growth. forgotten the source. to combat the risk of excessive credit growth.

She consults with FINMA before his request and shall inform at the same time the federal Department of finance. If the federal Council approves the request, it changes, in the annex, this order in the sense of the application.
The countercyclical wheel may be limited to certain positions of credit. It is removed or adapted to new circumstances if the criteria for ordering it are more filled. The procedure is governed by the al. 1 and 2.
Art. 43, al. 2 and 3, apply by analogy to the countercyclical wheel.

Art. 45 additional capital banks need to hold additional own funds according to the instructions of the FINMA. It may exempt certain categories of banks of this obligation.
Additional own funds must particularly take into account risks not or insufficiently covered by the minimum own funds and ensure, together with the wheel of capital within the meaning of art. 43, compliance with minimum requirements for capital, even in the event of adverse circumstances.
When a Bank holds no additional own funds within the meaning of para. 1, FINMA may order special measures concerning the observation and control of the situation in terms of own funds and risk.
Under special circumstances and on a case-by-case, FINMA may require other equity, especially when the minimum own funds, the wheel of own funds and additional own funds ensure more sufficient security compared to commercial activities, the risks taken, to business, to the quality of the management strategy risks or to the level of development of the techniques used.

Art. 46 maximum debt ratio the FINMA may, during the observation period used to fix the debt ratio maximum "leverage ratio", force banks to submit reports in accordance with the minimum requirements of Basel.
It collects the data necessary for the calculation of the ratio of maximum debt at the level of the financial group and the establishment.
The report is prepared as part of the proof of own funds.

Art. 47 parallel calculations when using approaches of models the FINMA can require banks that determine their own funds through approaches of models subject to authorization (IRB approach, method of the EPE models, models approach to market risk, or specific approach to institutions) a parallel calculation of own funds according to a standard approach it deems appropriate.

Expected Positive Exposure Chapter 2 Section 1 General Art. credit risk 48 definition the notion of credit risk, in the context of the calculation of own funds, means the risk of loss that occurs: a. when a counterparty is not able to honour its contractual commitments. forgotten the source. When financial instruments issued by third parties, including equity securities, instruments of interest rates and of the units of collective investment schemes, undergo a depreciation in value.

Art. 49 positions to be weighted according to risk positions should be weighted according to risk if they present a risk of credit and deduction of capital within the meaning of art. 31 to 40 is scheduled.
The term refers to positions: a. claims, including the commitment appropriations unregistered assets; (b) receivables related to securitization operations; c. other operations off-balance converted to their equivalent credit; d. NET positions in equity securities and instruments of interest out of the trading portfolio; e. the net positions in equity securities and instruments of interest rate trading portfolio using the de minimis approach (art. 82 al. 1, let. (a); f. positions in own securities and investments classified as trading portfolio.

When a position of counterparties related to the senses of the art. 109 is not distributed according to various counterparties must be weighted with the highest factor applicable to various related counterparties.

Art. 50 approaches the weighting of the various positions to determine the minimum capital required in respect of the risks of credit according to the art. 42, al. 2, let. a, is carried out according to one of the following approaches: a. international standard approach (AS - bis, art. 63-75); forgotten the source. the approach based on internal ratings (IRB, art. 77).

AS - bis and IRB approaches can be combined.
The use of the IRB approach requires authorisation from FINMA. It sets the terms of the authorization.
It lays down the technical implementing provisions related to credit risk and securitisation.

Section 2 calculation of positions art. 51 net net positions are calculated as follows: physical inventory, more claims on the return of the loaned securities, net of commitments to return the borrowed securities + cash and purchases not executed (including the "financial futures" and "swaps") term. /. sales to cash and term not executed (including the "financial futures" and "swaps") + commitments of recovery related to emissions, net of awarded sous-participations and sales firm, insofar as they eliminate the risk of price incurred by the Bank + claims on delivery related to the purchase of "calls" weighted to the delta factor. /. delivery commitments related to the issue of "calls" weighted factor delta + trade-in commitments related to the issue of "puts" weighted to the delta factor. /. claims to the assignment related to the purchase of "puts" weighted to the delta factor.

Brought to the liability value and specific provisions should be deducted from the net position.
Positive net positions are referred to by the terms "net long positions" and the absolute amounts of negative net positions by 'net short positions.


Art. 52 net positions for the equity instruments of companies active in the financial sector the net positions for the equity instruments of companies active in the financial sector are calculated as follows, in view of the additional requirements set out in paras. 2 and 3: physical inventory, more synthetic positions and claims covering the return of the loaned securities, net of commitments to return the borrowed securities + cash and purchases not executed (including the "financial futures" and "swaps") term. /. sales cash and Futures not executed (including the "financial futures" and "swaps"). /. positions in relation to show business, held for five working days or less + delivery claims related to the purchase of "calls" weighted to the delta factor. /. delivery commitments related to the issue of "calls" weighted factor delta + trade-in commitments related to the issue of "puts" weighted to the delta factor. /. claims to the assignment related to the purchase of "puts" weighted to the delta factor.

In the case of directly-held instruments which are instruments of equity or instruments through which the equity instruments are held indirectly or synthetically, with the exception of the own equity instruments, the compensation of long positions and short positions is allowed only if: a. long positions and short positions relate to the same equity instrument; ETB. the short position of the instrument has the same duration as the long position or its residual duration is one year at least.

For own equity instruments, the following positions must be determined for each component (CET1, AT1 and T2) and be deducted from the corresponding component in accordance with the art. 32-34: a. the net position of the own equity instruments held directly or synthetically, long positions and short positions can be compensated only if they relate to the same equity instrument and that the short position has no counterparty risk; (b) the net own instruments of equity funds indirectly through a financial instrument such as an index or an index option the compensation is authorized only if the long and the short position relate to the same basic instrument; counterparty risk related to the short position should be covered.

New content according to Chapter 4 of annex 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).

Art. 53 positions resulting from off-balance sheet operations off-balance sheet operations are converted using conversion factors credit equivalent. This equivalent is the position that must be weighted according to risk.
Banks using the IRB calculate the credit equivalent of contingent liabilities and irrevocable commitments according to the rules of the AS - bis when the IRB has no corresponding provision.

Art. 54 contingent liabilities and irrevocable commitments contingent liabilities and irrevocable commitments credit equivalent is obtained in the AS - bis, by the increase of the nominal value or the present value of each transaction by its credit equivalent conversion factor according to annex 1.
Within the limits of the under-participation, contingent liabilities for which the Bank gave a sous-participations can be treated as direct claims against the respective sub-participation.

Art. 55 risk of any value adjustments of derivatives in addition to the risk of default of counterparties in derivatives according to the art. 50 and 56, banks must also cover the risk of loss on the value of market by value adjustments of derivatives based on the credit risk of the counterparty by minimum own funds.
FINMA defines the calculation method for the minimum own funds in light of the calculation method for the equivalent credit (art. 56) and market risks (art. 82). It relies in this regard on the minimum standards of Basel.
It offers a conservative simplified calculation method to the banks did not choose a method of models according to art. 56 or under art. 82. art. 56 calculation of derivatives the credit equivalents of the derivatives can be computed according to the following methods: a. the market value method; (b) the standard method; c. the method of models relating to positive exposure expected (EPE models method).

The use of the EPR model approach requires the permission of FINMA. The latter defines the conditions for authorisation.
FINMA said the calculation of the equivalent credit for contractual or legal compensation case according to art. 61 involving more than two parties.
These methods apply to all derivatives, they are traded on an Exchange or over-the-counter.

Art. 57 method of the market value of the credit equivalent to the market value method is the sum of the value of current replacement and the increase of security ("add - on").
FINMA defines the basis on which the respective increases of different types of instruments must be determined and the level of the increases.

Art. 58 standard method the credit equivalent according to the standard method is calculated by multiplying, by the factor of 1.4, the greater of the following two amounts: a. the market value of derivatives after taking account of the security interests; b. the position-risk prescribed by prudential regulation.

Art. 59 models EPR the FINMA method sets the calculation of the equivalent credit derivatives models EPR method. It relies in this regard on the minimum standards of Basel.
The credit equivalents are multiplied by the factor of EPE. FINMA defines the EPE factor on a case by case basis. This factor amounts to 1.2 at least.

Art. 60 instruments of interest rate and equity securities if the instruments of interest rate or equity securities are instruments of equity of a company active in the financial sector, the net position is determined in accordance with art. 52. the net position in instruments of interest rate and unallocated equity securities in the trading portfolio, of a single issuer, including the weighting based on the risk is identical, is determined according to the art. 51. the physical stock of positions outside the trading portfolio is taken into account at book value.
The al. 1 and 2 also apply to the instruments of interest rate and equity allocated to the trading portfolio, where the approach of de minimis (art. 82, para. 1, let. a) is applied.

Art. 61 measures to mitigate the risk the following measures to mitigate the risk may be taken into account in the calculation of the positions: a. legal and contractual compensation ("netting"); (b) safeguards; c. credit derivatives; ETD. the other collateral.

On request, the banks must demonstrate to the audit company or FINMA measures to mitigate the risk to have force of law in different jurisdictions.
FINMA said measures to mitigate the risk.

Art. 62 transactions backed by collateral a bank can take into account the collateral according to art. 61, al. 1, let. d, at its discretion according to: a. the simple approach. forgotten the source. the overall approach.

In the simple approach, positions backed by securities shares are attributed to the class of positions of the protection provider.
In the global approach, the position is offset to competition backed by collateral. The net position remains in the initial class of positions.
FINMA said approaches.

Section 3 Classes of positions and their weighting according to AS - BRI Art. 63 classes of position the banks divided positions in classes of positions.
The positions of classes of positions can be balanced through the external ratings: a. central Governments and central banks; b. public law communities; c. the Bank for International Settlements (bis), the International Monetary (Fund IMF) and the Multilateral Fund of development; d. banks and traders in securities; e. institutions created in common; f. awards and the clearing houses; g. businesses.

Following positions classes can not be weighted using external ratings: a. physical people and the small businesses (positions "retail"); b. Pfandbriefe Swiss; c. positions guaranteed direct and indirect wages real estate; d. subordinate positions e. positions in suffering; f. equity securities and shares of collective capital investments; g. other positions.

Art. 64 use of external ratings the banks using the AS - BRI can weigh the positions through the ratings issued by rating agencies if they are acknowledged by the FINMA.
FINMA assigns the ratings agencies recognized in the various classes of scoring and determines the risk weighting that is applicable.

The use of external ratings must be applied consistently by institutions according to a precise and specific concept.
When a bank weighs positions by using the ratings of external agencies, all positions, except for those belonging to the class of 'business' positions, must in principle be weighted on the basis of the so-called external ratings. When it also weights the positions of the class of position "enterprises" with the external ratings, all of the positions in this class should be weighted using external ratings.
When a bank weighs positions without using external ratings or no credit rating from a recognized agency is available, there is instead of using the weights of the class called 'no rating '.

Art. 65 use of external ratings on a consolidated basis the notations used in the companies to consolidate can be applied at the level of the group.

Art. 66 calculation of positions to weigh the positions attributed to classes of positions according to art. 63, al. 2, are weighted according to annex 2 for the AS - bis.
The positions assigned to the classes of positions according to art. 63, al. 3, let. a to e and g, are weighted according to annex 3.
The positions assigned to the class of positions according to art. 63, al. 3, let. f, are weighted according to annex 4.
Net positions in instruments of interest according to art. 60 are assigned to the class of positions of the issuer and weighted accordingly.
For positions in the form of equity instruments of companies active in the financial sector, the weighting according to paras. 3 and 4 relates to the share of the net position according to art. 52 who has not deducted from the own funds according to the approach of deduction (art. 33).

Art. 67 positions in local currency on central Governments or central banks when the State supervisory authority prescribed positions in local currency on the central Government or the Central Bank of that State are subject to a risk weighting lower than that provided for in art. 66, al. 1, banks are empowered to weigh such positions in the same way if these positions are refinanced in the local currency of the country concerned and as far as banking supervision, local or appropriate. This similar weighting is applicable only to the edge of this position which was refinanced in local currency.

Art. 68 banks and securities dealers securities dealers can be stored in the class of 'banks and securities dealers' positions (art. 63, para. 2, let. d) unless they are subject to supervision equivalent to that of the banks.
The positions offset from off-balance sheet operations are attributed to the shortest deadlines $ offset positions.
Positions to banks without any external rating (excluding letters of business short-term credit to automatic outcome for trade financing) can receive a risk weighting that is lower than the amounts due to the State of the domicile.

Introduced by section 4 of Schedule 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).

Art. 69 exchanges and clearing houses clearing houses are institutions which is the contractual performance arising from contracts traded.
The risk weightings of 0% and 2% for the risk of credit according to annex 2 are applicable when a regulated central counterparty is directly involved in the transaction between two market participants, and a comprehensive and appropriate risk coverage system ensures good performance thanks to this central counterparty.
The cover system is particularly appropriate and complete when: a. contracts are valued daily at the market price and margins are adapted every day; b. value changes expected for the next day are also covered at all times, with a high confidence; unexpected losses etc. are also covered.

FINMA defines the additional criteria for central counterparties in relation to derivatives and repo operations and similar operations in accordance with the minimum standards of Basel.

Art. 70 credit risk and guarantee commitments towards central counterparties for banks acting as clearing agent of a central counterparty for derivatives traded on the stock market or off scholarship and for the repo and similar operations, the FINMA defines the method for the determination of the minimum capital for the risks resulting from the explicit and implicit guarantee commitments to the CCP. It relies in this regard on the minimum standards of Basel.
CCPs are clearing houses involved as contracting party between counterparties to contracts and guarantee the execution of these contracts during their lifetime.
Compensation officers are empowered, as a party, to intervene in a direct transaction with the central counterparty, either on their own account or as an intermediary between the CCP and other market participants.

Art. 71 positions on companies without scoring when a bank weighs positions on companies by using the ratings, the positions without rating get the risk weighting of 100% or that of the central State, when this is greater than 100%.

Art. 72 positions guarantees either directly or indirectly by objects of dwelling real estate tokens are used by the owner of the credit himself or leased buildings.
The construction loans and credits related to the land are attributed to the categories of lands for the future use of the financed object, according to annex 3.
The risk weighting of 35% is applicable to objects of sis home abroad if a risk management appropriate and similar to that applicable to the home objects in Switzerland is not assured.
Wealthy pension assets and pension benefits claims off according to the art. 30b of the Federal Act of 25 June 1982 on the occupational old-age, survivors and disability (LPP) and 4 of the Ordinance of 13 November 1985 on the deductions tax allowed for contributions to recognized forms of insurance are taken into account as own funds of the creditor the computation of the decisive position for the weighting of risk according to annex 3 : a. If the pledge is performed as an additional coverage of a receivable secured by a mortgage lien; b. If it a dwelling object assigned to the own use of the borrower; etc. If the minimum requirements according to para. 5 are met.

The risk weighting of positions guaranteed by real wages within the meaning of annex 3 is 100% if the credit does not meet the minimum requirements of self-regulation that FINMA recognizes a value of minimum standard under art. 7, al. 3, of the Act of June 22, 2007 on the monitoring of the financial markets. These minimum requirements must provide: a. an adequate minimum share of own funds provided by the borrower which should not be a gage layout or a payment early by virtue of art. 30B and 30 c BVG; b. an amortization of credit is appropriate in terms of time and amounts.

RS 831.40 RS 831.461.3 RS 956.1 art. 73 equity positions in equity securities are weighted according to annex 4. Excludes assessments of net positions which: a. are deductible from the components of own funds in accordance with the art. 31 to 40; forgotten the source. must be weighted in accordance with art. 39, al. 2 art. 74 credits Lombard Lombard loans can be individually weighted classes corresponding positions, according to the simple approach (art. 62, al. 1 let. a) or according to the comprehensive approach (art. 62, al. 1, let. b).

Art. 75 loans, repurchase agreements and similar operations on securities lending, repurchase agreements and similar transactions on securities can be processed according to the simple approach, the overall approach or method EPA models, based on the corresponding positions of the various classes.

Art. 76 positions arising from transactions not executed replacement values positive positions arising from transactions not executed in currencies, securities and goods, with a risk of loss because of regulations delayed or not run (positions arising from transactions not executed) and which payment is made according to the principle "delivery against payment" or "payment against payment" under a system of execution of payments or transactions in securities , are weighted as follows: number of banking days after weighting agreed settlement date - may 5 to 15 100% 625 16 to 30 31 to 45 937,5% 46% or more 1250% positions arising from transactions not executed, including the regulation is performed in a different way, are handled as follows:

a. the Bank who made the rules of his treats the transaction as a credit until the consideration; When the positions are not material, it is possible to use a risk weighting of 100% in place and place the risk weighting from a rating; b. when the consideration has not been obtained in five working days following the date of settlement agreed, value delivered and a possible positive replacement value are weighted at 1250%.

Updates and repo and securities lending and borrowing are treated exclusively according to art. 75 section 4 approach based on internal ratings (IRB) art. 77. banks which apply IRB to calculate risk-weighted positions and determine the capital required to cover credit risk have the choice between: a. the simple IRB ("foundation IRB"; F - IRB); forgotten the source. the advanced IRB ('advanced IRB'; (A - IRB).

FINMA said the calculation. It relies in this regard on the minimum standards of Basel.
In the absence of regulations governing the IRB, the AS - bis provisions shall apply by analogy.

Chapter 3 risks without matching art. 78 definition the notion of counterparty risk means a risk of loss from changes in values or assets not related to counterparties such as buildings and other assets.

Art. 79 weighting the following positions must be weighted at 100% to cover the risks without consideration: a. real property; (b) other fixed assets and current assets amortized recorded under other assets, insofar as they are not deductible from the hard core capital according to art. 32, let. c. clearing account active balance is weighted at 0%.

Chapter 4 market risks Section 1 General art. 80 principle of market instruments of interest rates and of the equity securities of the portfolio of trading positions in foreign currency, gold and commodity risks of all of the Bank must be covered by own funds.
FINMA lays down the technical requirements for market risks.

Art. 81 definition On market risk means the risk of loss related to fluctuations in the value of a position, due to a change in the factors determining its price as the price of stocks or commodities, exchange rates and interest rates as well as their respective volatilities.

Art. 82 approaches for calculating the minimum own funds to cover market risks may be calculated as: a. approach minimis; (b) the standard approach to market risk; OUC. the models approach to market risk.

When several approaches according to para. 1 are used, the minimum own funds correspond to the total minimum own funds calculated according to the approaches used.

Section 2 approach minimis art. 83. banks which do not exceed the defined limit values can calculate the minimum capital for interest rate instruments and securities of the portfolio of trading according to the art. 66 to 76. They apply, in doing so, the provisions governing the approach to cover credit risk.
FINMA sets the limit values.

Section 3 standard approach to market risk art. 84 instruments of interest rate of trading portfolio the minimum own funds required to cover the specific risk of interest rate instruments are determined by multiplying the net position in each issue by the rate mentioned in annex 5.
FINMA enacts the technical provisions applicable to the calculation of the minimum own funds required to cover the specific risk of the instruments of interest arising from securitisations and divided into slices in function risks.
The minimum own funds required to cover the general market risk of interest rate instruments correspond to the sum of the values determined by currency according to the deadlines method or the method of the 'duration '.

Art. 85 instruments on the trading portfolio shares minimum own funds required to cover the specific risk of equity instruments amounts to 8% of the net positions of each transmitter.
The minimum own funds required to cover the general market risk of equity instruments amounts to 8% of the sum of the net positions of each national market.

Art. 86 positions in currency the minimum own funds required to cover the positions in currency market risk amounted to 8% of the sum of the net long positions and the sum of the net short positions. The largest amount is decisive.

Art. 87 positions in gold and raw the minimum own funds required to cover the risk of market positions in gold amount to 8% of the net position.
The minimum own funds required to cover the risk of raw materials are determined according to the approach of maturity brackets or the simplified approach.

Section 4 models approach to market risk art. 88. the use of the models approach to market risk requires the approval of FINMA. This last set conditions for authorization.
FINMA said the method of calculation of the minimum capital according to the models approach to market risk. It relies in this regard on the minimum standards of Basel.
It sets the multipliers in the models approach to market for each institution. In so doing, it takes into account authorization and conditions the accuracy of forecasts of the model of aggregation of risk unique to the facility. Multipliers are at least 3.0 each.

Chapter 5 risks operational Section 1 General art. 89 definition On operational risk means the risk of loss related to the inadequacy or failure of internal procedures, people or systems or external factors. Include legal, unlike strategic risk and reputational risks.

Art. 90 approaches to calculating banks can determine the minimum own funds required to cover operational risk according to: a. the basic indicator approach; b. the standard approach; c. the specific ("Advanced MeasurementApproaches" approaches; WADA).

The use of a specific approach requires the permission of FINMA.
FINMA enacts the technical provisions applicable to the approaches referred to in para. 1 art. 91 indicator banks income that determine their minimum own funds to cover operational risks using the Basic or standard approach indicator approach must calculate therefor an indicator of revenues for each of the last three years. This indicator is the sum of the following positions of the income statement: a. gross result of interest income; (b) the result of the operations of committees and of service delivery. c the result of the operations of trading and the fair value option; d. the income from investments unbound; summer. the result of the buildings.

All products from outsourcing agreements according to which the Bank itself provides services to third parties must be integrated into the indicator of income.
Banks that appear in the title of principals of outsourced services may not deduct the corresponding indicator of income charges if outsourcing is done within the financial group and that it is included in the consolidation.
Banks can, with the consent of the FINMA, determine the indicator of income based on international requirements recognized governing the establishment of accounts in place and place of the applicable Swiss requirements.

New content according to Chapter 4 of annex 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).
New content according to Chapter 4 of annex 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).

Section 2 approaches art. 92 of the basic indicator approach the minimum own funds correspond to 15% of the indicator of income determined by the average of the last three years. Only years with a positive indicator of income are taken into account.
FINMA may make use of the basic indicator approach to additional qualitative requirements for risk management.

Art. 93 standard approach the minimum own funds are calculated as follows: a. an income indicator is calculated and multiplied by the rate contained in para. 2 for each business segment and each of the past three years; (b) the values of the resulting annual amounts are totaled; However, negative values of specific segments may be offset with positive values of other segments; c. the minimum own funds correspond to the average of the three years; the possibly negative amounts are set to zero in the determination of the average.

The activities are divided into the following business segments and multiplied by the following rates:

a. Financing and business advice 18 %b. trading 18 %c. 12 %d private customer business. business business customer 15%. traffic of the payments/settlement 18 %f. business filing and escrows 15 %g. institutional wealth management 12 hour. Commission on securities 12% the FINMA may make use of the standard approach additional qualitative requirements for risk management.

Art. 94 approaches (AMA) institutions banks may calculate the minimum own funds through a specific approach.
FINMA provides the required permission when the Bank has a model to quantify operational risk by the use of data from internal and external losses, analysis of scenarios and the determinants of the business environment and internal control system.

Title 4 Chapter 1 provisions risk allocation General Section 1 purpose art. 95 big risk a big risk appears when the overall position towards a counterparty or a group of related counterparties reaches or exceeds 10% of own funds, corrected according to the art. 31 to 40.
Banks must limit and monitor the risks.

Art. 96 market risks each bank must provide appropriate internal limitations of all significant market risks for its activity. These limitations should also include buildings used by the Bank as well as other buildings.

Section 2 maximum limits applicable to big risks art. 97 maximum limit allowed by big risk, a big risk may not exceed 25% of the capital taken into account, corrected according to the art. 31 to 40.

Art. 98 overruns of the maximum limit the maximum limit applicable to a big risk may not be exceeded only: a. If the amount excess is covered by own funds freely available; forgotten the source. If the excess is only the consequence of the reconciliation of counterparties until then independent of the merger of the Bank with other companies in the financial sector.

When own funds are used to cover overruns resulting from a big risk, it should highlight the State of own funds according to art. 14. the amount exceeding the maximum limit of the fact of a reconciliation, according to para. 1, let. d, may not increase. The excess must be resolved within the period of two years after the legal completion of the reconciliation.

Art. 99 internal positions of the group when a bank is part of a financial group or financial conglomerate under appropriate consolidated supervision, the internal positions of the group can be totally excluded from the maximum limit according to art. 97 when the companies concerned are included in full in the consolidation of equity and distribution of risks (full consolidation) and: a. If they are submitted individually monitoring appropriate; forgotten the source. If they don't have in quality of consideration than submitted individually to appropriate oversight group companies.

FINMA is empowered to restrict the general exception for the internal positions of the Group para appropriately in enforcement provisions. 1. the internal positions to other companies of the group are submitted, on an aggregate basis, to the ordinary maximum limit of 25% of the capital taken into account, corrected according to the art. 31 to 40.

Section 3 duty to announce big risk art. 100 announcement of big risks the Bank is required to announce quarterly to its body responsible to senior management, monitoring and control and, within the period of a month, for the banking audit company established by law, based on a form established by the FINMA, an inventory of all the big risks at the individual level selected deadlines.
In addition, an announcement on a consolidated basis must be done semi-annually, within a period of six weeks.
The big risks according to art. 97 must be announced before deduction of the range covered by own funds freely available (art. 98, para. 1, let. a).
When a big risk is a member of the bodies or participant qualified within the meaning of art. 3, al. 2, let. c, LB, or a person or a company that is close, the risk should be reported in the statement under the General heading 'business with the bodies.
When a big risk relates to other companies of the group, it must be reported in the statement under the General heading 'business group. The components of the position-risk "business group" which, in accordance with the art. 99, al. 1, and 112, al. 2, let. d, are excluded from the maximum limit, must also be announced.
The audit company checks the internal control of the big risks and appreciate the evolution.

Art. 101 advertisement for overruns not authorized when the bank notes that a big risk exceeds the maximum limit, without whether an exception under art. 98, al. 1, it must immediately inform the audit company and FINMA.

Art. 102 announcement of internal positions of the Bank group must establish on a quarterly basis, at the same time as the big risk inventory, a picture of the internal positions of the group according to art. 99 and put it back to the audit firm and the body responsible to senior management, monitoring and control. A distinction must be made between the companies of the group according to art. 99, al. 1 and 3.

Section 4 principles of calculation art. 103 firm commitments of recovery resulting from emissions specific positions to issuers on firm recovery resulting from emissions commitments must be calculated as follows: a. granted sous-participations and firm subscriptions can be deduced from the firm recovery of debt commitments and participation issued, insofar as they eliminate the risk of corresponding market incurred by the Bank; (b) the residual amount must be multiplied by one of the following conversion factors : 1 0.05 from the day where the commitment of recovery has been irrevocably subscribed, 2 0.1 the day of the release of the show, 3 0.25 second and third working days after the release of the show, 4 0.5 the fourth business day after the release of the show, 5 0.75 the fifth business day after the release of the show, 6 1 as soon as the sixth day after the release of the show.

Art. 104 equity securities and subordinated debt securities the equity instruments deductible of own funds according to the art. 31 to 40 should not be taken into account when calculating the overall position.

Art. 105 individual patches of individual values and provisions specific value as well as individual provisions constituted on positions, operations off-balance sheet and net long positions must be deducted before the individual weighting of positions.

Art. 106 positions resulting from transactions not executed transactions not completed after the fifth day business (art. 76) must be incorporated into the overall position in their value of claim.

Art. 107 derivatives derivatives are converted to their equivalent credit according to the art. 56 to 59.

Art. 108 compensation legal and contractual compensation ("netting") of receivables with commitments to counterparties is admitted in a measure identical to the calculation of own funds.

Art. 109 group of related counterparties the overall position toward a group of related counterparties is the sum of the overall positions of individual counterparties.
Whole composed of at least two natural or legal persons shall form a group of related counterparties and must be treated as a single entity: a. when one of them directly or indirectly the other holds a participation of more than half of the votes or otherwise exercises a dominant influence over it; b. where there is between economic relationships apparent such that it is likely that If one of them had financial problems, others would experience difficulties of payment; c. when they are held as a participation or dominated by the same person; d. when they form a consortium. Oue. When the counterparties are linked by a common source of refinancing.

Several consortia are not considered to be counterparties related to each other in case of identity of one or all of the consorts; Similarly, the other positions on the individual consorts should not be added together.
Legally independent companies in public hands are not regarded as forming with the community of public law that dominates related counterparties: a. If the community of public law is not required legally to respond to the commitments of the company; forgotten the source. If it is a bank.

In the case of receivables arising from securitisation positions, share a fortune invested or other debt obligations backed by assets, the Bank determines the or takers credit, taking into account the economic substance and the structural risks of operations, including potential concentration of risk.

The collective investment schemes, and each segment in collective investment schemes to compartments ('umbrella' Fund), are deemed constitute independent consideration. When a Bank has up-to-date information on the composition of the investments, it can to alternative title attribute corresponding components to the overall positions of the respective issuers.

Art. 110 positions on a consortium a consortium positions are attributed to the different consorts according to their share.
In the case of passive solidarity, the Bank must assign all of the position to the account of the consorts whose solvency has been ranked when the decision to grant credit.

Art. 111 positions of the companies of the Group companies of the group are a group of related counterparties for each Bank of the group or of the financial conglomerate.

Section 5 relief and reinforcements art. 112. FINMA may, in some cases, grant relief or order reinforcements.
This could include: a. impose ad restrictions or maximum limits lower for international positions specific; b. prescribe maximum limits for properties held directly or indirectly by a bank; c. allow on request cost overruns in the short term to the maximum; d. declare applicable the exception of art. 99, al. 1, relative to the maximum for some or all of the companies of the group or extend it to some group companies which do not meet the conditions of art. 99, al. 1; e. release not companies of the group in financial sector integration in the position associate according to art. 99, al. 1 and 3; (f) release of the entries not included in the consolidation, according to art. 9, al. 1, let. a, of integration in the position associate according to art. 99, al. 1 and 3; g. lower or increase the weights-risk applicable to compensation determined; h. fix an another time prescribed in art. 98, al. 3. Chapter 2 overall Position and weight art. 113 position the position of compensation is the sum of the following positions: a. the positions weighted according to art. 115, subject to the exceptions in art. 114; b. the positions according to the art. 117 and 118; c. off-balance sheet operations converted to their equivalent-credit (art. 119); d. positions from loan, repurchase agreements and similar transactions on securities (art. 122); e. the net long positions in securities (art. 123).

When calculating the overall position, it is necessary to include at least communicated to the counterparty irrevocable credit limits.

Art. 114 exclusions of the overall position positions below are excluded from the calculation of the overall position for consideration: a. positions on: 1. central banks and central Governments which are weighted at 0%, and2. the bis, the IMF and some multilateral development banks designated as such by the FINMA.

b. positions with a guarantee explicit counterparties according to the let. has; c. the positions in Swiss Pfandbriefe; d. positions secured by rights pledges real estate on home in Switzerland and abroad, objects used by the borrower or leased, exceeding not 50% of the value of the gagé building; e. positions covered by collateral, or another form of security of at least equivalent quality deposits of funds from the Bank; f. positions covered by debt issued by the Bank, affluent or deposited with it; g. positions on a CCP under art. 69, al. 2 and 3.

Art. 115 risk weighting on a counterparty positions are weighted at 100%.
Positions on the corporations of public law of the classes of ratings 1 and 2 are weighted at the rate of 20%.

Art. 116 maximum limits applicable to the big risks to banks and traders in securities in derogation of art. 97, the maximum limit applicable to the big risks to each Bank and securities dealer, provided that it is not banks or financial groups considered systemically important to the national or international level, amounts to: a. 100% equity, fixed according to the art. 31 to 40, insofar as these are less than 250 million Swiss francs; b. 250 million CHF, insofar as the amount of adjusted capital taken into account, corrected according to the art. 31 to 40, lies between 250 and 1000 million Swiss francs.

Art. 117 positions backed by collateral a bank may assign the covered part of the positions guaranteed to the overall position of the third party or of the consideration when the conditions provided for in art. 61 are fulfilled and that the position is guaranteed by one of the following instruments: a. Securities debt or participation issued by third parties and collective capital investment share; b. the fiduciary from third parties; c. guarantees of third parties, provided that any asymmetries of duration and currency risks are limited as appropriate.

When the guarantee is provided by debt or equity securities issued by third parties, by units of collective investments, capital or fiduciary investments from third parties the Bank can also calculate the various positions according to art. 118 s. 118 taking into account securities banks which apply the simple approach in accordance with art. 62, al. 1, let. a, as part of the AS - BRI may take into account securities according to the approach described in art. 117, al. 1. banks which apply the global approach as defined in art. 62, al. 1, let. b, as part of the AS - BRI or the F - IRB must calculate the values of the entirely appropriate positions, according to art. 62, al. 3, when they are backed by collateral.
Banks which apply the A - IRB may calculate the positions backed by securities, according to para. 2 or use their own estimates of loss ("loss given default;") LGD") and values of positions (" exposure at default; ") EAD'), when: a. financial collateral impacts can be estimated reliably, regardless of other issues that have an impact on the LGD; b. the procedure matches the approach used to determine the capital requirements.

Collateral can be taken into account according to the procedure described in paras. 2 or 3 when the risk of concentration resulting are limited and monitored adequately. Otherwise, there is place to apply the procedure laid down in art. 117, al. 1. the procedures according to the al. 2 and 3 cannot be applied if the Bank performs periodic stress tests ("stresstests") concerning its concentrations of credit risk, including the possible values of all security rights taken into account in this regard.

Art. 119 operations off-balance sheet off balance sheet operations must be converted to their equivalent credit according to the art. 120 and 121 and weighted with the rates applicable to the counterparty under art. 115 s. 120 contingent liabilities and irrevocable commitments contingent liabilities credit equivalent is obtained by multiplying the nominal value or the present value of each transaction by its credit equivalent conversion factor according to the art. 53, al. 2, or 54, al. 1. in derogation to the above, the nominal value of each irrevocable commitment is multiplied by the conversion factor to credit equivalent of 1.0.
Irrevocable credit issued as part of a syndicated loan commitments are subject to conversion in credit equivalent following factors: a. 0.0 from the time of the issuance of the commitment by the Bank to its acceptance and confirmation by the counterparty; b. 0.5 from the moment where the counterparty accepted the commitment of the Bank and until the time of the launch of the phase of syndication; c. 0.5 share no unionized during the phase of syndication and 1 of the share destined to stay in own hands; d. 1.0 completeness of the part not unionized after 90 days (residual risk).

Contingent liabilities and irrevocable commitments for which the Bank gave the sous-participations are treated analogously to the art. 117, al. 1 art. 121 derivatives derivatives are treated in accordance with art. 107. the rules of art. 106 are applicable when an operation on derivatives is not executed at expiration.

Art. 122 operations loan, pension and similar operations on securities lending, repurchase agreements and similar securities transactions are processed in accordance with art. 118 s. Global 123Position inherent to the issuer subject to the exceptions in art. 114, net long positions of each transmitter must be calculated separately for securities debt and participation, trading and portfolio of the Bank's portfolio, according to the art. 51 and 52. Firm recovery resulting from emissions commitments may be addressed under art. 103. the sum of the various net long positions is the inherent to the issuer overall position.


New content according to Chapter 4 of annex 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).

Title 5 provisions for systemically important banks Chapter 1 provisions general art. 124 principle also the requirements applicable to all banks in terms of capital and risk distribution according to titles 3 and 4 of this order, the special requirements of this title apply, and more, to systemically important banks.
Special requirements must be met at the level of the financial group and each institution of systemic importance, subject to art. 125 art. 125 flexibilities for financial groups and individual establishments the FINMA grant relaxations at the level of the individual when property: a. requirements at the individual property level lead to raise the level of requirements at the level of the financial group. and Frenchie. at the level of the financial group, the Bank took measures that can reasonably be expected of her to avoid raising the level of requirements.

The measures which impose the adoption of a group or a specific organization structure are not considered as reasonably required.
In the event of changes in the structure of his group or his organization, the Bank is entitled to relaxations that if the conditions referred to in para. 1 are met.
Including may be granted separately or jointly the following flexibilities within the meaning of para. 1: a. the requirements for own funds to individual institutions may be set below the requirements for financial group; capital of systemically important institutions should, in all cases, amount to 14% at least of the positions weighted by risk; b. deductions of investments can be reduced; c. internal coverage by own funds requirements can be reduced in the Group; d. funding of the group can be facilitated.

The specific requirements at the level of the financial group and the individual establishment of systemically important, so that the flexibilities granted are published by: a. FINMA, which is an outline; ETB. the concerned bank or financial group, in the context of the regular report on its activities, indicating the capital ratio.

Chapter 2 convertible Capital taken into account art. 126 description and program are considered as of convertible capital capital within the meaning of art. 11, al. 1, let. b, in conjunction with art. 13 LB and the capital received by the issuance of bonds with an abandonment of claims according to art. 11, al. 2, LB, to the extent where he meets the requirements of this chapter.
The convertible capital is issued to investors outside the financial group by: a. the parent company of the Group; (b) a company of group established for that purpose by financial groups and conglomerates in banking dominance; OUC. another company group with the permission of FINMA.

Art. Taking into account the convertible capital 127 can be taken into account in competition on the part of the components of the own funds contributing to the absorption of losses in the event of an event trigger ("trigger"). Losses are absorbed in the following forms: a. reduction of debt following an abandonment of debt; (b) conversion into hard core capital of the Bank.

Under art. 11, al. 4, LB, FINMA approval taking into account if the Bank proves that the effects provided by the LB and its enforcement orders will intervene and requirements of companies with the capital market law are met.
Before conversion, the convertible capital must at least meet the requirements for additional capital within the meaning of art. 30 of this order.

Chapter 3 article risk-weighted capital requirements 128 basic requirement systemically important banks must meet sustainably, using hard core capital, a basic requirement of 4.5% of the positions weighted by risk according to art. 42, al. 2 of this order.

Art. 129 equity driving the systemically important banks must keep a wheel of own funds corresponding to 8.5% of the positions weighted by risk according to art. 42, al. 2 the wheel of own funds requirement must be met by means of hard equity. The convertible capital whose conversion is triggered when the hard core taken into account capital pass below 7% of risk-weighted positions can be taken into account to 3% at most of such positions.
In general, the wheel of own funds requirement must be met continuously. A passage below the required threshold is temporarily eligible when the Bank makes a loss, the Bank is required to rebuild the wheel of equity without delay as soon as she has recovered her earning power.
In case below the required threshold, the Bank should indicate measures and delay planned to rebuild the wheel of own funds. FINMA approve the delay. If capital requirements are not met at the end of the period, FINMA may order appropriate measures.

Art. 130 progressive component systemically important banks must keep a progressive component, resulting from the application of the rate of increase according to art. 131 to the positions weighted by risk according to art. 42, al. 2. the progressive component must be covered by convertible capital whose conversion is triggered at the latest when the hard core taken into account capital spend risks below 5% of the positions weighted in function.
The Bank may also meet the progressive component using hard core capital requirements. In this case, the part of the latter is taken into account as additional own funds.

Art. 131 growth the growth rate, which determines to a large extent the progressive component, is fixed by FINMA once a year, at the end of the second quarter, and must have been implemented at the beginning of the next calendar year at the latest.
The growth rate is calculated on the basis of the financial group. It is crucial to set the own funds to financial group and each individual institution of systemic importance.
It is the sum of the supplements related to market share and the size of the financial group, after deduction of the flexibilities granted for measures to improve the ability of reorganization and liquidation of the financial group in Switzerland and abroad. Supplements and flexibilities are calculated in the following manner: a. the supplement linked to the market share of the financial group is zero if market share less than or equal to 10% in activities of systemic importance at the national level; the supplement increased by 0.15 of a percentage point for each half percentage point of market share that exceeds 10%; is considered the highest market share averaged for the activities of credit and deposit at the Swiss level, on the date of the end of the previous year, as reflected in the statistics of the Swiss National Bank surveys; b. the supplement linked to the size of the financial group is zero if the commitment within the meaning of art. 135, corrected growth of Swiss gross domestic product since the entry into force of this order, is less than or equal to 250 billion Swiss francs; the supplement increases of 0.06 percentage point for every 25 billion Swiss francs of the corrected total commitment which exceeds the amount of 250 billion francs Swiss; c. the flexibilities for measures to improve the overall capacity of reorganization and liquidation of the financial group as a whole according to the provisions of art. 65 and 66 OB are determined by the FINMA after consultation with the Swiss National Bank. for this purpose, FINMA is based on the effectiveness of the measures in question and take into account the effects of feedback between the various types of discounts; the flexibilities should not endanger the applicability of the emergency plan.

No relaxation is granted for evidence that the emergency plan ensures the continuation of the functions of systemic importance in case of threat of insolvency according to art. 9, al. 2, let. d, LB.
When a bank he proposes measures, FINMA may consult foreign authorities in charge of supervision and insolvency-related issues and take account of their assessment at the time enjoy improving the overall capacity of reorganization and liquidation of the financial group with a view to the granting of a rebate.
The growth rate is around 1% at least, regardless of supplements and the flexibilities.

New content according to Chapter 4 of annex 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).
RS 952.02 corrected Version (see Erratum, FF 2012 7507) art. 132 countercyclical wheel


The countercyclical wheel according to art. 44 must be satisfied in addition to capital requirements.

Chapter 4 requirements unweighted capital (leverage ratio") art. 133 principle systemically important banks must meet specific capital requirements that are appreciated in terms of the total commitment.
These consist of a minimum requirement, a wheel of own funds and a progressive component. Subject to art. 134, they are based on the provisions of Chapter 3 to the risk-weighted capital.

Art. 134 calculation requirements unweighted capital, calculated on the total commitment amounted to 24% percentages: a. the requirement for base according to art. 128; b. the wheel of own funds according to art. 129, al. 1 and 2; etc. of the rate of increase according to art. 131, al. 1 art. Total 135Engagement total commitment is the denominator of the leverage ratio calculated in accordance with the minimum requirements of Basel. It is based on the values given in the accounts and includes the positions in the balance sheet and off-balance sheet positions.
FINMA enacts technical implementing provisions according to the minimum requirements of Basel.

New content according to Chapter 4 of annex 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO). See the disp. Trans. art. 148. Chapter 5 special regulations on the distribution of risks art. 136 a big risk risk can represent 25% at most of the hard core capital that are not used to cover the progressive component.
The maximum limit applicable to a big risk cannot be exceeded unless: a. the amount over the limit is covered by hard basic own funds which are not used to cover the own funds according to the art. 128 and 129; or sib. overtaking is only the consequence of the reconciliation of counterparties until then independent of the merger of the Bank with other companies in the financial sector.

When own funds are used to cover overruns linked to a big risk, it should highlight the State of own funds according to art. 14. the excess according to para. 2, let. b, should not be increased. It must be eliminated within a period of two years.

Title 6 transitional provisions and final provisions Chapter 1 provisions transitional art. 137 coverage by own funds of risk of credit, counterparty risk and market according to the old law risks banks which have set their positions within the meaning of the old law in accordance with the provisions applicable to the Swiss standard approach (AS - CH) can maintain this approach until 31 December 2018 to determine the positions weighted by credit risk (art. 42 al. 2, let. (a) except for positions that are guaranteed directly or indirectly by the mortgage on residential buildings. They can deduct weighted positions, as long as these are not offset, 75% of the value fixes and provisions on the balance sheet to cover positions requiring capital.
Banks that make use of this possibility determine their positions weighted to risks without matching also according to the old law (art. 42, al. 2, let. b) and their minimum own funds for market risks (art. 42, para. 2, let. c).

New content according to Chapter 4 of annex 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO). Erratum from 10 nov. 2015 (2015 4297 RO).

Art. 138. another application of the Swiss approach to calculate the big risks according to the old law banks applying the AS - CH to credit risk during the transitional period according to the art. 137 can determine their big risks according to the Swiss approach on the allocation of risk under the old law.
They must however, from January 1, 2013, weight 100% their positions to banks and securities dealers and respect the maximum limits according to art. 116, applying to the big risks to banks and securities dealers.

Art. 139 entry into force of the cover equity exchange-traded derivatives and risk of credit to central counterparties the FINMA determines from when the new requirements of the minimum standards of Basel on exchange-traded derivatives (art. 56, para. 4) and risk of credit to central counterparties (article 69 and article 70) must be respected.

Art. 140 capital taken into account A starting January 1, 2013, are more famous own funds instruments of capital of own funds additional basic and additional own funds which were issued after September 12, 2010 and who do not meet the new conditions of regulatory consideration. The al. 3 is reserved.
Issued before September 12, 2010 capital instruments can be a degressive taking into account over a period of ten years, in accordance with art. 141; they are more known build equity as of January 1, 2022, at least.
The capital instruments of additional base and issued additional own funds own funds between September 12, 2010 and December 31, 2011 can be taken into account in a degressive manner according to art. 141 if only the contractual provisions addressing the risk of insolvency are lacking (art. 29).

Art. 141 taking into account of the original own funds and additional own funds within the meaning of the old law the capital participations and other components of the background clean of base according to the old law, the new law does not admit as basic own funds hard or additional core capital and which were issued prior to September 12, 2010 can be taken into account according to the al. 6 and 7 for 10 years at the most. In is excluded the participation capital of banks not organized into a corporation, which may continue to be charged to the hard core capital according to the same mechanism.
Additional own funds according to the old law that were issued before September 12, 2010 and are not part of the own funds complementary according to this order may subject to degressive taken into account as additional own funds according to para. 1 with effect from the entry into force of this order, the regulatory own funds break down, for the period between January 1, 2013 and December 31, 2022 as late, as follows: a. the hard core capital within the meaning of the new provisions; b. the additional core capital within the meaning of the new provisions; c. the "Tier 1" according to the old law, according to para. 1 d. additional own funds within the meaning of the new regulations; e. 'Tier 2' according to the old law, according to para. 2. up to December 31, 2021 at the latest, the components according to para. 3, let. b and c, are additional basic own funds, while the components according to the let. d and e are additional own funds.
All components of the own funds according to the al. 1 and 2 are a quantitative assessment on the date of entry into force of this order and are added by category.
The date of January 1, 2013 amounts determined under para. 5 are reduced by 10% per year, for the first time on January 1, 2013. They are the upper limit of the maximum of the components of own funds according to the old law may be taken into account during the current year. The amount taken into account must not exceed the amount of the capital of adequate quality instruments available to the Bank.
If an existing capital instrument can no longer be taken into account as additional core capital due to the gradual reduction of the possibilities for taking into account according to para. 6, it can be taken into account as own funds complementary if he meets the new requirements, and insofar as it is excluded from the additional own funds.

Art. 142 introduction phase of deductions changes that the old law did not occur at the level of the hard core capital of increasingly, 20% annual increments over a period of 5 years: a. 20% of the threshold amount from January 1, 2014; b.   40% of the threshold amount from 1 January 2015; c.   60% of the threshold amount from January 1, 2016; d.   80% of the threshold amount from January 1, 2017; summer. 100% of the threshold as of January 1, 2018.

The share of the positions according to para. 1 not subject to deduction is taken into account in the own funds, in accordance with the weighting of risk according to the old law.
Deductions already made partially or entirely on the core capital according to the old law are converted in stages in a deduction on the hard core capital according to the steps of calculation defined in the al. 1. for the sharing of positions according to para. 3 not subject to deduction, the deduction under current law continues decreasing way, in increments of 20 percent per year, over a 5-year period:

a. 100% of the threshold amount from 1 January 2013; b.   80% of the threshold amount from January 1, 2014; c.   60% of the threshold amount from 1 January 2015; d.   40% of the amount determining from 1 January 2016; e.   20% of the threshold amount from January 1, 2017.

The supplementary deduction according to para. 4 is abolished as of January 1, 2018.
Threshold 3 (art. 35, para. 4) mounts until December 31, 2017, at 15% of the hard core capital after taking into account all the amendments, with the exception of the deduction of the amount exceeding the threshold of 3.
New deductions of additional basic and additional own funds own funds are introduced using the same approach in stages as described in paras. 1 to 5.

New content according to Chapter 4 of annex 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).

Art. 143 minimum own funds according to art. 42, al. 1, 2013 and 2014 CET1 ratio amounts to: a. 3.5% in 2013; b. 4.0% in 2014.

The core capital ratio amounted to: a. 4.5% in 2013; b. 5.5% in 2014.

Art. 144 wheel of own funds according to art. 43 of 2016 to 2018 the wheel of own funds according to art. 43 amounts to: a. 0.625% by 2016; b. 1,250 percent in 2017; c. 1.875 percent in 2018.

Art. 145 basic requirement for systemically important banks the rate of the base according to the art requirement. 128, al. 1, amounts to 3.5% from 1 January 2013, and 4% in 2014.

Art. 146 flying rates for the wheel of own funds according to art capital for systemically important banks. 129, al. 1, and for the consideration of the convertible capital according to art. 129, al. 2, amount respectively to: a. 3.5% and 1% in 2013; b. 4.5% and 1.75% in 2014; c. 5,125% and 2.25% in 2015; d. 6.25% and 2,625% by 2016; e. 7.125% and 2,875% in 2017; f. 7.875% and 3% in 2018.

Art. 147 component progressive growth according to art. 131 amounts to: a. 25% in 2013; b. 45.8% in 2014; c. 62.5% in 2015; d. 75% by 2016; e. 85.4% in 2017; f. 93.75% in 2018.

In derogation from art. 130, al. 2, convertible capital whose conversion is triggered when the hard core taken into account capital spend below 7% of the total of the positions weighted in function of risk can also be factored in the gradual until end of 2017 component.

Art. 148 application of current law to important banks systemic decisions made to banks of systemic importance under the previous law, which focus on the specific capital requirements apply until 31 December 2018 at the latest.

Art. Transitional 148aDisposition on April 30, 2014 changing banks must meet the new requirements of art. 135 in terms of overall commitment to no later than January 1, 2016.

Introduced by section 4 of Schedule 2 to the O from 30 Apr. 2014 on banks, in effect since Jan. 1. 2015 (2014 1269 RO).

Chapter 2 provisions final art. 149 repeal of the law in force the order of 29 September 2006 on own funds is repealed.

[RO 2006 4307, 2008 5363 annex ch. 8, 2009 6101, 5429 2010 and 2012 3539]

Art. 150 changes to the law in force the change in the law in force is set in annex 6.

Art. 151 entry into force this order comes into force January 1, 2013, subject to the al. 2 and 3 of this article.
Art. 43 comes into force on January 1, 2016.
The provisions of title 5 come into force, except for the art. 126 and 127, subject to their approval by the Federal Assembly.

Approved by the SSA. fed. Sept. 18. 2012 (FF 2012 7771).

Annex 1 (art. 54, para. 1) conversion factors in credit equivalent in case of application of the AS - BRI number parolees and commitments irrevocable credit equivalent AS - BRI 1 conversion factors.

Credit commitments 1.1 with a firm commitment and an initial contract term of less than one year 0.20 1.2 with a firm commitment and an initial contract period of one year or more 0,50 1.3 who may be denounced at any time and without any condition or which lapse automatically in case of deterioration of the creditworthiness of the debtor 0.00 2.

Guarantees of the defects of the work for the execution of works in Switzerland and abroad 0.50 3.

Guarantee services that will liquidate themselves in transactions on goods 0.20 4.

Commitments to release and making payments additional 4.1 on equity not recognized under participation 1,00 4.2 on equity securities when it comes to entries that should not be consolidated 1,00 4.3 on equity securities when it comes to consolidate holdings or holdings in the insurance industry 1,00 5.

5.1 guarantee services that do not provide collection risk 0.50 5.2 which ensure the risk of recovery 0.50 6.

Other contingent liabilities 1.00 State on 1 January 2016 Schedule 2 (art. 66, al. 1) Classes of positions of the ACE - bis when using external ratings and weights y related revenue Classes of positions (AS - bis) with the possibility to use external ratings Classes 1 2 3 4 5 6 7 without fixed rating 1 ratings.

Central Governments and banks 1.1 central Governments and central banks 0% 0% 20% 50% 100% 100% 150% 100% - 1.2 Confederation, Swiss National Bank, European Central Bank, European Union - 0% 2.

Corporations law public law Corporations 2.1 public 20% 20% 50% 100% 100% 150% 150% 100% - 2.2 Corporations under public law without ratings if they are empowered to raise taxes or if their commitments are guaranteed full and unlimited by a public community - 50% 2.3 Cantons without scoring - 20% 3.

BIS, IMF and multilateral development banks 3.1 multilateral development banks 20% 20% 50% 50% 100% 100% 150% 50% - 3.2 Bank (bis) International Settlements, International Monetary Fund (IMF), some multilateral development banks designated by the supervisory authority - 0% 4.

Banks and traders in securities 4.1 banks and securities dealers, initial term of debt < 3 months 20% 20% 20% 20% 50% 50% 150% 20% - 4.2 banks and securities dealers, duration > 3 month initial 20% 20% 50% 50% 100% 100% 150% 50% - 5.

Institutions created in 5.1 common institutions created in common by banks, recognized by the FINMA 20% 20% 50% 100% 100% 150% 150% 100% - 5.2 commitments of payment towards the deposit guarantee Association - 20% 6.

Scholarships, rooms of clearing and CCPs 6.1 scholarships, room clearing and CCPs 20% 20% 50% 100% 100% 150% 150% 100% - 6.2 CCPs when credit risks follow directly from contracts processed on an Exchange or over-the-counter by the central counterparty which guarantees the execution of the transactions (including derivatives, operations development pension and similar operations, where the central counterparty guarantees the performance of the obligations on the duration).

-2% 6.3 exchanges and clearing houses when credit risks stem directly from the performance of services guaranteed by a central counterparty in transactions where the CCP does not guarantee that the treatment (including cash transactions).

-0% 7 companies 20% 20% 50% 100% 100% 150% 150% 100% - State on 1 January 2016 Schedule 3 (art. 66, al. 2) Classes of positions of the ACE - bis without use of external ratings and weights y related revenue Classes of positions (AS - bis) without ratings external risk-weightings AS - bis 1.

Individuals and small businesses ("retail") 1.1 Positions on retail for as much as the total value of the positions on a consideration according to art. 49, al. 1, not covered by mortgage in the form of dwelling objects, does not exceed 1.5 million francs and 1% of all positions on this 75% other 1.2 customer positions on the retail 100% 2.

2.1 pledge letters letters of pledge Swiss 20% 3.

Value 75% 3.3 objects of dwelling located in Switzerland and abroad, including positions guaranteed directly or indirectly by real wages 3.1 objects of dwelling located in Switzerland and abroad, up to two-thirds of the market value 35% 3.2 objects of dwelling located in Switzerland and abroad, beyond two-thirds and up to 80% over 80% of the market value 100% 3.4 other buildings and objects 100% 4.

Subordinate positions 4.1 Positions subordinate on corporations under public law, including the risk weighting according to annex 2 (AS - bis) is not 50% are weighted and no subordinate positions 4.2 other subordinate positions 5.

Positions outstanding 5.1


Positions according to ch. 3.1, adjusted to the amount of the individual value adjustments. The positions guaranteed by mortgage according to ch. 3.2 to 3.7 are deemed not covered 100% 5.2 share positions covered, adjusted to a maximum of value individual, insofar as they represent at least 20% of outstanding 100% 5.3 shares of uncovered positions, adjusted to a maximum of value individual, insofar as they represent less than 20% of the outstanding amount 150% 6.

Other positions 6.1 liquidity, without the positions reporting to the point 6.2 of annex 2 0% 6.2 resulting credit Equivalents of the commitments to free and make additional payments 100% 6.3 other positions (incl. transitional accounting boundaries) 100% State on 1 January 2016 Schedule 4 (art. 66, para. 3) risk weighting of the equity securities and shares of collective investment schemes in the AS - BRI class of positions "titles of participation and shares of collective investment schemes" risk weights AS - BRI 1.1 titles held equity in financial assets or, when the Bank applies approach minimis, in the trading book.

Treated on a regulated stock exchange Yes 100% not 150% 1.2 shares of collective investment schemes of capital shares of collective investment schemes of capital that have received approval to be distributed in Switzerland shares of collective capital which the regulation contains a commitment to repurchase shares Yes Yes 100% - no 150 non - 150% 1.3% daily real estate investment fund units processed on a regulated stock exchange Yes 100% not 150% 1.4 Participations outside the sector banking financial and processed on an Exchange regulated Yes 100% assurances no 150% 1.5 shares in banking, financial and insurance, as long as they are not deducted from the own funds hard or own funds basic additional or weighted to 250% according to art. 40, al. 2 150% State on 1 January 2016 schedule 5 (art. 84, para. 1) rates applicable to the calculation of the own funds required to cover the risk of specific instruments of interest rate according to the standard approach to market risk category class rating rate Governments Central and central banks 1 or 2 0.00% 3 or 4 0.25% (duration residual < 6 months) 1.00% (residual > 6 months and < 24 months duration) 1.60% (residual > 24 months duration) 5 or 6 8,00% 7 12,00% rating 8.00% interest rate Instruments qualified (art. 4 (, let.g) 0.25% (residual < 6 months duration) 1.00% (residual > 6 months and < 24 months duration) 1,60% (residual > 24 months duration) others 5 8,00% 12.00% 6 or 7 rating 8.00% State on January 1, 2016 annex 6 (art. 150) amendment of the law in force...

Mod. can be found at the RO 2012 5441.

Status January 1, 2016 Schedule 7 (art. 44, para. 2) countercyclical flywheel 1. Banks are required to maintain, in the form of hard core capital, a countercyclical wheel positions guarantees either directly or indirectly by a mortgage for residential objects in Switzerland within the meaning of art. 72.2. the countercyclical wheel corresponds to 2% of risk-weighted positions.

Introduced by section I of the O on Feb 13. 2013 (2013 693 RO). New content according to section I of the O of Jan. 22. 2014, in force since 30 June 2014 (RO 2014 437).

Status January 1, 2016

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