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05 October 2010

Swiss committee of experts urge higher capital requirements


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Die vom Schweizer Bundesrat eingesetzte Fachkommission hat in ihrem Bericht ein Maßnahmenpaket zur Vermeidung der sogenannten "too-big-to-fail" Risiken für Banken vorgelegt, die für die schweizer Wirtschaft systemisch wichtig sind.


At the heart of this is increased capital requirements: consisting of "8% total capital, of which at least 4.5% must be held in the form of common equity, i.e. top-quality capital, and 6% in the form of Tier 1 capital. In accordance with the eligibility criteria, CoCos may be included in these minimum requirements." The proposed calibration would be 19% total capital, i.e. including buffers and convertible bonds of which 10% has to be common equity. In terms of liquidity requirements the FINMA and the SNB will continue to monitor the work of the Basel Committee closely in order to establish whether the adoption of the international standards will necessitate any amendments to the Swiss liquidity standards.




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