The Federal Council is overhauling its 'too big to fail' regime with tighter rules on executive compensation, clawback mechanisms, and capital requirements. The Swiss Federal Council has proposed enshrining mandatory bonus deferrals for top banking executives into law, part of a sweeping regulatory overhaul triggered by the spectacular collapse of Credit Suisse in March 2023. The Federal Council adopted a revision to the Banking Act on April 22, 2026, primarily addressing capital adequacy requirements for foreign subsidiaries of Swiss banks. Investors watching Swiss bank equities should pay attention to the staged rollout. The capital adequacy requirements for foreign subsidiaries, already adopted, could force structural changes in how Swiss banks organize their international operations.