The Swiss government has settled on a final version of new too-big-to-fail bank rules, which have been created to protect the Swiss economy from a collapse of a major bank. Under the proposals, banks would be required to hold more capital against their assets and pay higher fees for doing so. In a concession however, the Swiss government have rolled back a proposal to constrain balance sheets if they grow beyond a certain size. The new rules are to take effect from 1st July this year.
The Swiss government has settled on a final version of new too-big-to-fail bank rules, which have been created to protect the Swiss economy from a collapse of a major bank. Included in the new Swiss laws is the requirement of a 5% leverage ratio of core capital to total assets for Switzerland's two largest banks, UBS and Credit Suisse. In a concession however, the Swiss government have rolled back a proposal to constrain balance sheets if they grow beyond a certain size. The new rules are to take effect from 1st July this year.