ZURICH, June 4 Reuters Swiss financial regulator FINMA wants to be able to name and shame banks which breach its rules, Chief Executive Stefan Walter told newspaper NZZ in an interview published on Tuesday.

The call is one of FINMA39;s demands for increased powers after the authority came under fire over its handling of Credit Suisse39;s collapse last year.

Today, the publication of enforcement proceedings is the exception, Walter told the newspaper. In the future, noncommunication should be the exception.

Naming and shaming financial institutions would have a disciplinary effect if the companies knew punishments would be made public, said Walter, who took up his post in April.

It also shows what the supervision achieves, he said. The dilemma of every supervisory authority is if something goes wrong, everyone knows. If something is prevented, no one knows.

Banks needed to be more open and give full information, he said. If cooperation was not forthcoming, the regulator could carry out more onsite inspections.

In extreme cases, you must have the option of holding individuals responsible and, if necessary, removing them, he said.

This required a cocalled senior managers regime, where responsibility is assigned to individuals making it easier to trace who was at fault.

The Swiss government in April listed 22 recommendations to improve the regulation of the country39;s outsized financial sector, including tougher capital requirements.

Switzerland39;s biggest…