It has been just revealed that financial authorities now consider bank withdrawal limits and exit fees. Check out the latest reports about this below.
Switzerland makes important moves
The Swiss National Bank, along with the Swiss Finance Ministry, is reportedly discussing new measures aimed at making it more difficult for wealthy individuals to withdraw their money from banks.
This comes after a report claimed that the discussions are being held in an effort to prevent bank runs, following the collapse of Credit Suisse earlier this year.
According to sources familiar with the matter, the group is exploring potential fees and limits on bank withdrawals for high-net-worth clients.
“Among the measures being discussed is the option to stagger a greater portion of withdrawals over longer periods of time, one of the sources said.
Imposing fees on exits is also an alternative being discussed, two of the sources said.”
The group is currently discussing whether to offer higher interest rates to customers who keep their savings for a longer period.
The Finance Ministry had earlier informed Reuters that these discussions are part of a comprehensive inquiry into the country’s financial regulatory framework, and a report will be published next year.
Following the release of the news article, the Ministry promptly responded by stating that staggered withdrawals are not being considered.
Credit Suisse’s failure occurred in March, shortly after the failures of Silicon Valley Bank and Signature Bank in the US, according to the latest reports coming from the online publication the Daily Hodl.
The sudden collapse of the bank, which was the second-largest Swiss bank at the time, was caused by a loss of confidence in it due to the scandal that surrounded it.
It has been revealed that as a response, the Swiss National Bank provided $185 billion of emergency liquidity, but it was eventually sold to UBS for only $3.3 billion.
