UBS, Credit Suisse May Need to Boost Capital to 19%
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UBS AG and Credit Suisse Group AG need to hold almost double the capital required under Basel III rules, said a Swiss government-appointed panel, proposing the first capital surcharge on too-big-to-fail banks.
Switzerland’s biggest banks should hold total capital equal to at least 19 percent of their assets, weighted according to risk, compared with 10.5 percent level the Basel Committee on Banking Supervision announced last month, the Swiss panel said today. By 2019, the lenders need to have a common equity ratio of at least 10 percent, compared with 7 percent required under Basel III rules, and the rest in contingent capital.