May 22, 01:16 PM

Swiss FINMA Calls for Liquidity Regulation Adjustments, Warns on Mortgage Lending and GS Capital AG Unauthorized Activities

The Swiss Financial Market Supervisory Authority (FINMA) has issued warnings and calls for regulatory adjustments across various financial sectors. FINMA highlighted concerns that banks are granting mortgages too readily to buyers who may not afford them, indicating a need for stricter regulatory oversight in mortgage lending. Additionally, banks advocate for adjustments in liquidity regulations related to securitizations, noting that residential mortgage-backed securities (RMBS) and senior asset-backed securities (ABS) are treated less favorably compared to senior secured bonds under current rules. Furthermore, FINMA publicly warned that GS Capital AG, currently in liquidation, is suspected of unauthorized financial market activities. Separately, the Labuan Financial Services Authority announced business restrictions on 33 licensed entities due to non-compliance with minimum capital and other regulatory requirements. These developments underscore ongoing regulatory scrutiny and efforts to enhance financial market stability.

#FINMA #GS Capital AG #Labuan Financial Services Authority

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Swiss FINMA Calls for Liquidity Regulation Adjustments, Warns on Mortgage Lending and GS Capital AG Unauthorized Activities

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