Swiss govt sets out to tighten big bank rules

The Pak Banker - - Company & Boss News -

BERNE: The Swiss govern­ment kicked off the le­gal process on Wed­nes­day to tighten the reins on its biggest banks, UBS and Credit Suisse, in or­der to pre­vent a bank fail­ure crip­pling the coun­try. The govern­ment's pro­posed changes to Swiss bank laws are based on a com­mis­sion re­port pub­lished in Oc­to­ber, rec­om­mend­ing that the big banks must hold more cap­i­tal than global ri­vals and meet tough stan­dards in ar­eas such as liq­uid­ity.

"Sys­tem­i­cally im­por­tant banks should hold more cap­i­tal, meet more strin­gent liq­uid­ity re­quire­ments and im­prove their risk di­ver­si­fi­ca­tion," the govern­ment said in a state­ment.

"They should be or­gan­ised in such a way that a na­tional econ­omy's sys­tem­i­cally im­por­tant func­tions can be main­tained even in the event of threat­ened in­sol­vency." - PB News

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