Thus the current system of industry self-regulation will continue. The bank deposit protection will remain at up to SFr100,000 per customer if a bank goes bust. This was introduced as a reaction to the credit crisis at the end of 2008.

The rejected changes to the system were proposed by the Swiss government in September last year. They included a two-stage system, financed by the banks themselves. This would have been a fundamental change from previous Swiss practice.

Stage one would have involved a public-law fund of about SFr9.75 billion, set up to secure bank deposits. This fund would have been put into place by the banks themselves by making annual payments towards two thirds of the amount needed. The other third would have been secured through hypothecation of securities. If this approach did not work and the fund would have run out of money, a second stage of the draft proposals offered two different alternatives: a federal advance payment by the Swiss government and a federal guarantee.

The government now said that the reactions to these proposals were critical and dismissive. In particular the costs of such new system were criticised and the fact that the system in place appears to be working and should therefore not be nationalised.

However, the consultation process showed that most of those involved favoured a deposit protection of SFr100,000. The Federal Council will now make sure that this emergency measure, which was put into place in December 2008 following the financial crisis, will become permanent.