The Savings & Loan bank Thun (SLT) was declared insolvent in October 1991, the first year of the regional bank crisis in Switzerland. Pictures of the bank run went around the world and scratched on the extraordinary reputation of Swiss banks. In contrast to other banks who were bailed out by cantons or acquired by bigger banks, the SLT got liquidated in an expensive process that came to an end after 14 years in 2005. The liquidation capital finally amounted only to roughly 60% of the liabilities and that is why the event remains as a trauma in the minds of the region's people.
The collapse of the SLT was the motivation to revise the Swiss banking legislation dating back to the 1930s. It constituted the other comprehensive revision of banking legislation in the last 90 years in Switzerland next to the revision of the too big to fail legislation in the aftermath of the subprime crises and the related UBS bail-out in 2008.
Though data for a detailed comparison is not available, this paper will show that real estate prices on a national level faced heavy declines only after 1991. Hence, either the region of Thun experienced higher price declines already in 1991, which cannot be tested, since regional data is not available, or what will be argued, the SLT was mismanaged and thus more vulnerable to the massive interest rate hike by the SNB in 1989 than other (regional) banks.
TABLE OF CONTENT
0. Introduction
1. The regional bank crisis
Characteristics of the Swiss banking sector in 1991
Structural changes in the banking sector
Macroeconomic developments
Comparison to other crises
Savings & Loan bank Thun (SLT) in the narrative of the regional bank crisis
2. The case of the Savings & Loan bank Thun (SLT)
Chronology of the Savings & Loan bank Thun's anniversary year 1991
Savings & Loan bank Thun's credit activity
Supervision problems/ auditors' failures
3. Why was the Savings & Loan bank Thun (SLT) not bailed out?
4. Conclusion
5. Bibliography
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Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen.