Swiss Raise Bank-Capital Buffer to Cool Property Market

Switzerland is raising the amount of capital banks must hold as a buffer to guard against mortgage writedowns as the country finds itself in the throes of its biggest property boom in two decades.

The government in Bern has agreed to the Swiss National Bank’s request to raise the buffer, to 2 percent from 1 percent of risk-weighted positions secured by residential real estate, according to a statement today. The deadline for banks to comply is June 30.