A Swiss Finish for Australia? Approaches to Enhancing the Resilience of Systemically Important Banks

RP Buckley, RH Weber & M Dowell-Jones, “A Swiss Finish for Australia? – Ways to Enhance the Resilience of Systemically Important Banks” (2015) 10 (1) Capital Markets Law Journal 41-70

UNSW Law Research Paper No. 2015-13

29 Pages Posted: 11 Apr 2015

See all articles by Ross P. Buckley

Ross P. Buckley

University of New South Wales (UNSW) - Faculty of Law

Rolf H. Weber

University of Zurich - Faculty of Law

Mary Dowell-Jones

University of Nottingham Human Rights Law Centre

Date Written: March 27, 2015

Abstract

The global financial crisis of 2008-9 placed the ‘too-big-to-fail’ issue at the forefront of public and regulatory debate. This paper presents a comparative study of regulatory measures taken to address this issue in Switzerland and Australia. Australia’s banking system was distinguished from its peers in advanced economies during the crisis as it did not require substantial injections of public money. Although no Australian banks are global systemically important financial institutions, it does have a sizeable too-big-to-fail problem in the domestic financial system that requires a targeted regulatory response. Switzerland offers an interesting comparative study for Australia because Switzerland has responded to its too-big-to-fail problem with a market leading package of measures that go far beyond that required by Basel III, in response to the problems of UBS during the crisis. Despite differences in the two countries’ financial systems, this article seeks to identify the lessons that can be drawn for Australia from Switzerland.

Keywords: GFC, financial regulation, Australia, Switzerland, Basel III

Suggested Citation

Buckley, Ross P. and Weber, Rolf H. and Dowell-Jones, Mary, A Swiss Finish for Australia? Approaches to Enhancing the Resilience of Systemically Important Banks (March 27, 2015). RP Buckley, RH Weber & M Dowell-Jones, “A Swiss Finish for Australia? – Ways to Enhance the Resilience of Systemically Important Banks” (2015) 10 (1) Capital Markets Law Journal 41-70; UNSW Law Research Paper No. 2015-13. Available at SSRN: https://ssrn.com/abstract=2592484

Ross P. Buckley (Contact Author)

University of New South Wales (UNSW) - Faculty of Law ( email )

Sydney, New South Wales 2052
Australia

Rolf H. Weber

University of Zurich - Faculty of Law ( email )

Rämistrasse 71
Zürich, CH-8006
Switzerland

Mary Dowell-Jones

University of Nottingham Human Rights Law Centre ( email )

Law and Social Science Building
University Park
Nottingham, NG7 1BB
United Kingdom

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