The Swiss National Bank (SNB) has designated Raiffeisen Group as a financial group of systemic importance.
The SNB said it made the decision in consultation with Raiffeisen and the Swiss Financial Market Supervisory Authority (FINMA).
Raiffeisen joins the ranks of banking giants UBS and Credit Suisse, as well as the Zürcher Kantonalbank (ZKB), which were declared too big to fail by the regulator last November.
The designation means that Raiffeisen Group will face stricter regulatory requirements, such as setting aside a more substantial cushion as a buffer against any potential market upsets.
It will be required to take measures to reduce risks and prepare an emergency plan to keep systemically relevant functions running.
The SNB considers the services offered by Raiffeisen as indispensable to the Swiss national economy.
Raiffeisen has 350 branches and a balance sheet of CHF183 billion ($202 billion), making it one of Switzerland’s largest banking service providers.