September 08, 2020

New recommendations for banks on dealing with insolvency risks at companies

The drastic drop in GDP and the consequences thereof are weighing on the economy. The SBA is therefore working together with the sector on recommendations for dealing with potential insolvencies. The aim is to avoid bankruptcies wherever possible by ensuring the best possible coordination between the banks supplying the loans and SMEs. This gives companies time to implement restructuring and recovery measures – and therefore to safeguard jobs.

Herbert J. Scheidt, Chairman of the SBA, says: “Competitive banks and a stable financial centre are a basic prerequisite for the functioning of our economy. With their extensive network across Switzerland, the banks provided even greater support for their clients during the corona crisis. They are fulfilling their responsibility and serving as reliable partners to the economy. The SBA also proved its efficacy as a central point of contact and coordinator for the sector during the crisis. Today, we can see the results of the work we have done over the last four years, during which we made significant changes at the Association.”