Liquidity Ordinance (LiqO)
English is not an official language of the Swiss Confederation. This translation is provided for information purposes only and has no legal force.
Section 1 General
Art. 19 Special liquidity requirements
1 In addition to the requirements set out in Chapter 3, systemically important banks shall meet special liquidity requirements in order to cover the liquidity risks that are not, or not sufficiently, covered by the LCR. 2 The special liquidity requirements comprise: a. the basic requirements; b. FINMA's institution-specific additional requirements.
Art. 19 — Amended by No I of the O of 3 June 2022, in force since 1 July 2022 (AS 2022 359).
Art. 20 Scope of consolidation
1 The special liquidity requirements shall be met by the entities listed below at the level of the financial group, the level of each individual entity licensed under the BankA and the level of each securities firm licensed under the FinIA: a. entities performing systemically important functions; b. the top-level entity in a financial group, where the scope of consolidation includes an entity under letter a; c. entities at the head of significant subordinate financial groups, where the scope of consolidation includes an entity under letter a; and d. entities which, owing to their core function or their relative size, are significant for the financial group. 2 In individual cases, FINMA may exempt entities whose direct share in the financial group's domestic systemically important functions does not exceed 5 per cent in total, or whose significance for the continuation of the financial group's systemically important functions is otherwise minor.
Art. 20 — Amended by No I of the O of 3 June 2022, in force since 1 July 2022 (AS 2022 359).
Art. 20a Eligible assets
1 The following HQLA are eligible for the purpose of meeting the special liquidity requirements if: a. they are not in the stock of HQLA needed for LCR compliance purposes; and b. the bank can freely dispose of them over a horizon of 90 calendar days. 2 The caps under Article 15c paragraph 1 letters b and c shall apply for the inclusion of Level 2A and 2B assets. In individual cases, FINMA may stipulate that these assets can also be included beyond these caps. When making its decision, it shall take into account the risk arising out of the fact that these assets cannot be readily sold. 3 An explicit cantonal state guarantee or similar mechanism is eligible if the guarantee or mechanism: a. counts towards compliance with the requirements on additional loss-absorbing capital under Article 132b CAO; and b. if drawn down, quickly results in an eligible liquidity inflow; FINMA shall decide if this condition is met on a case-by-case basis. 4 Of the total according to the following calculatio
Art. 20a — Inserted by No I of the O of 3 June 2022, in force since 1 July 2022 (AS 2022 359). Para. 3 let. a — Amended by Annex No 3 of the O of 23 Nov. 2022, in force since 1 Jan 2023 (AS 2022 804). Para. 3 let. a — SR 952.03 Para. 4 let. c — Amended by Annex No 3 of the O of 29 Nov. 2023, in force since 1 Jan 2025 (AS 2024 13).
Art. 20b Compliance with special liquidity requirements
1 The bank meets the requirements set out in this chapter if: a. the daily average of eligible assets from the rolling three-month period ending with the reference date corresponds at all times to at least the daily average liquidity needs in that period resulting from the special liquidity requirements; and b. the eligible assets correspond at all times to at least 80 per cent of the liquidity needs resulting from the special liquidity requirements. 2 The bank shall meet the requirements across all currencies, converted to Swiss francs.
Art. 20b — Inserted by No I of the O of 3 June 2022, in force since 1 July 2022 (AS 2022 359).
Section 2 Basic Requirements
Amended by No I of the O of 3 June 2022, in force since 1 July 2022 (AS 2022 359).
Art. 21 Requirements
The basic requirements encompass requirements in terms of liquidity needs as a result of: a. risks from loan renewals; b. risks from an accumulation of cash outflows immediately after calendar day 31 (cliff effects) and a 90-day stress scenario.
Art. 22 Liquidity needs as a result of risks from loan renewals
Systemically important banks shall hold sufficient eligible assets for the first 30 calendar days of the 90-day horizon, in order to cover the liquidity needs as a result of risks from loan renewals. For calculating liquidity needs, the inflow rate under Nos 5.1 and 5.2 in Annex 3 is reduced to 25 per cent.
Art. 23 Liquidity needs as a result of cliff effects and a 90-day stress scenario
1 Systemically important banks shall hold sufficient eligible assets to cover expected net cash outflows for the following positions: a. demand and term deposits with a residual maturity or notice period of up to 30 calendar days which are not withdrawn during the first 30 calendar days; b. positions with a residual maturity or notice period of 31 to 90 calendar days. 2 For positions under paragraph 1 letter a, the cash outflows for the 31st to 90th calendar days shall be calculated as follows: a. for outflow categories 1.1, 1.2 and 2.1 under Annex 2, an additional outflow shall be calculated, amounting to 5 per cent of the volume calculated for the LCR; b. for outflow categories 2.2 and 2.4 under Annex 2, an additional outflow shall be calculated, amounting to 17 per cent of the volume calculated for the LCR. 3 For positions under paragraph 1 letter b, the net cash outflow for the 31st to 90th calendar days shall be calculated. The positions shall be weighted with the outflow and infl
Art. 24 Recognition of liquidity-generating measures
For the purpose of meeting the requirements in Article 23, the securities listed in Annex 8 may be recognised at the current market rate, less the associated haircut, provided they are marketable and freely available. Securities may be recognised up to a ceiling of 30 per cent of total net cash outflows under Article 23 paragraphs 2 and 3.
Section 2a Institution-Specific Additional Require
Inserted by No I of the O of 3 June 2022, in force since 1 July 2022 (AS 2022 359).
Art. 25 Surcharges and haircuts
1 For liquidity risks that are not, or not sufficiently, covered by Chapter 3 or Articles 21 to 23, FINMA may impose institution-specific surcharges on quantified liquidity requirements, depending on the relevant risks. This applies particularly to liquidity risks arising from: a. intraday liquidity needs; b. initial margin payments; c. margin requirements for securities financing transactions traded over the counter and cleared through a central counterparty; d. debt buybacks; e. significant funding of a group entity by subsidiaries; f. non-risk-appropriate liquidity distribution within the financial group; g. liquidity needs for a potential restructuring or resolution; h. inadequate risk management with regard to liquidity. 2 Systemically important banks may request from FINMA that other liquidity-generating measures in addition to those under Article 24 be included, and that the resulting liquidity be recognised in the form of haircuts. 3 The haircuts cannot be higher than the surch
Art. 25 — Amended by No I of the O of 3 June 2022, in force since 1 July 2022 (AS 2022 359).
Art. 25a Procedure to determine surcharges and haircuts
1 When determining the level of the surcharges, FINMA shall take account of the systemically important banks' estimates of liquidity risks under Article 25 paragraph 1. 2 Banks that request haircuts from FINMA shall demonstrate the feasibility of the liquidity-generating measures, particularly in the event of a crisis that may place the bank at threat of insolvency under Article 25 BankA. 3 Banks shall regularly submit to FINMA the necessary documentation for the assessment of liquidity risks under Article 25 paragraph 1. FINMA shall specify the frequency of document submission. Updates shall be submitted outside the set frequency if changes make a reworking necessary or if FINMA demands such a submission.
Art. 25a — Inserted by No I of the O of 3 June 2022, in force since 1 July 2022 (AS 2022 359).
Section 3 Further Provisions
Art. 26 Shortfall relative to the special liquidity requirements
1 A shortfall relative to the special liquidity requirements is permitted in exceptional circumstances. Banks shall inform FINMA without delay if they fall short of the requirements, or are likely to do so. 2 If there is a shortfall, the bank shall specify what measures will be taken to restore compliance with the special liquidity requirements and by what deadline. FINMA shall approve the deadline. If the special liquidity requirements are not met after the deadline has expired, FINMA may order the necessary measures.
Art. 26 — Amended by No I of the O of 3 June 2022, in force since 1 July 2022 (AS 2022 359).
Art. 27
Repealed by No I of the O of 3 June 2022, with effect from 1 July 2022 (AS 2022 359).
Art. 28 Reporting obligations
1 Systemically important banks shall report their liquidity situation under this Chapter on a monthly basis. They shall submit data on their entities' liquidity situation under Article 20 to the SNB within 15 calendar days from the last calendar day of the month. 2 FINMA shall define the reporting format.
Art. 28 — Amended by No I of the O of 3 June 2022, in force since 1 July 2022 (AS 2022 359).
Art. 28a
Inserted by No I of the O of 22 Nov. 2017 (AS 2017 7635). Repealed by No I of the O of 3 June 2022, with effect from 1 July 2022 (AS 2022 359).
Art. 29 Tasks of the audit firm
The audit firm shall confirm the reporting on the quantitative liquidity requirements for systemically important banks and their compliance, in accordance with the auditing requirements.