Swiss get tough on big two banks
The new rules were seen as a move to restore confidence to Switzerland's crucial private banking industry, but could crimp the ability of the country's two biggest banks to compete in investment banking in Europe and on Wall Street.
The two banks should hold an equity tier 1 capital ratio of at least 10 per cent under the proposals laid out by the a government commission yesterday.
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Hide AdThe new Swiss rules go well beyond the new international standards set out three weeks ago, which require banks to hold a minimum core tier 1 ratio of 7 per cent.
Together, UBS and Credit Suisse hold more than four times the country's gross domestic product of $540bn in liabilities on their balance sheets.