Swiss government is set to prepare new tougher capital rules for UBS and Credit Suisse by end of 2015 in a bid to shield them against future financial meltdowns.
The move comes after banks worldwide have been directed to comply by rules capping their total assets at a multiple of high-quality equity until 2019.
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The aim of this approach is to stop banks from becoming too big to fail so that they needed to be rescued with taxpayer-funded bailouts.
The Swiss government said in a statement, "Additional measures and adjustments are required to boost the resilience of systemically important banks further and to make their restructuring or orderly resolution possible without taxpayers incurring any costs."
The changes to the current Swiss legislation will be made in consultation with the Swiss regulator, Switzerland’s central bank, as well as the banks concerned.
Both UBS as well as Credit Suisse have welcomed the amendments.
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By GlobalDataUBS said: "We broadly agree with the key findings and recommendations of the report. UBS is a leader in capital strength and has diligently adopted new regulatory provisions. We will adapt to further capital requirements as necessary.
"However, comparability with international standards must be ensured and a proper evaluation and disclosure of the potential negative consequences for the financial center and the broader economy is necessary."
Credit Suisse also said it was "pleased to note that the evaluation report acknowledges the effectiveness of the?.?.?.?too big to fail regime and does not consider a fundamental realignment to be necessary.
"The individual adaptive measures that will now be defined need to be aligned with international developments in terms of both content and timing, and the necessary transition periods must be granted. It will be important to ensure that Swiss regulations remain compatible with the Basel standard."
