C Suisse and UBS urged to improve capital and leverage ratios

UBS sign

The Swiss National Bank on Thursday urged UBS and Credit Suisse to improve their capital and leverage ratios, which it said would be a key focus in the event of a crisis.

'It is vital for the big banks to continue improving their capitalization, particularly as regards to the leverage ratio,' SNB Vice Chairman Jean-Pierre Danthine said on Thursday at the central bank's quarterly monetary policy assessment.

Reuters reports that last month, Switzerland's finance minister shocked the country's two largest banks by saying Swiss banks should be subject to a leverage ratio of between 6 and 10%, against the 3% for global banks under rules that come into force in 2018.

Danthine didn't comment on those remarks or disclose any specific targets for the big banks' leverage ratios, over which there is debate about how to measure.

'In an international comparison based on a number of commonly used definitions, they are still below the average of large global banks,' Danthine said.

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SNB urges UBS, Credit Suisse to improve capital, leverage ratios

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