Swiss banking lobby criticises proposed banking rules

FEB 12, 201611:15 PM

[ZURICH] Switzerland's banking lobby on Friday criticised the country's proposed new "too big to fail"regulation, arguing it gives Swiss financial watchdog FINMA too much discretion in enforcing the new rules.

"This results in the loss of legal and planning certainty for systemically relevant institutions," the Swiss Bankers Association (SBA) said in a statement.

"Furthermore, the SBA emphasizes that the new rules should be developed in a way that is commensurate with international standards, and that in the interests of international competitiveness, these do not extend even further beyond common standards."

In October, Switzerland outlined tough new capital requirements for its two biggest banks, UBS and Credit Suisse, to protect the economy from a major banking collapse.

REUTERS