Credit Suisse and UBS should boost their capital in common equity to 10% by 2019, a stiffer requirement than the one contained in the Basel III accord announced last month, an expert panel appointed by the Swiss government proposed Monday.
Tougher capital standards than foreseen in the new Basel III regulation are aimed at addressing the too-big-to-fail problem that has been a particular concern for Switzerland with its two outsized banking giants. International Basel III rules will require banks to hold 7% of capital in common equity.
Under the new proposal for Swiss banks, systemically relevant Swiss institutions would have to boost their total capital to 19% of their assets, weighted according to risk. This compares with 10.5% required under Basel III.
For more: Swiss Large Banks To Face Tougher Capital Ratios Than Basel 3 | iMarketNews.com
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