Banks in Switzerland were asked by the SNB to again review their Basel III Common Equity Tier 1 ratios, in order to better withstand losses, Investment Europe reported.
This has brought in twin challenges for the banks so as to meet the higher capitalization requirements as well as reducing their exposure to risk weighted assets.
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Fitch has further added that both UBS and Credit Suisse Group are meeting their capitalization requirements.
"Both banks’ credit profiles are supported by their small direct exposure to peripheral Europe and Switzerland’s safe haven status. Their funding and liquidity position is adequate, supported by their dominant wealth management franchises and to a lesser extent their leading Swiss retail and corporate franchises," Investment Europe quoted Fitch as saying.
Additionally, the strict regulation by Swiss authorities is also likely to be matched by other regulatory authorities across Europe in future.
"We expect other regulators to close the gap on the SNB and the Swiss Financial Market Supervisory Authority (FINMA) in the coming years," Fitch added.
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