Switzerland plans to tighten capital rules for its biggest banks

Finance Ministry is weighing an amendment to capital adequacy rules to try to ensure that the parent companies of systemically important banks are sufficiently well capitalized in the event of crisis

Switzerland is proposing bigger capital cushions for the country’s top banks that could force UBS Group and Credit Suisse Group to set aside an additional 24 billion Swiss francs ($24 billion) in reserves.
 
The Finance Ministry is weighing an amendment to capital adequacy rules to try to ensure that the parent companies of systemically important banks are sufficiently well capitalized in the event of a crisis, the government said in a statement on Friday. It cited concern about the impact of possible interest-rate rises on real-estate loans.
 
“The additional funds the two big banks need to absorb the