Swiss regulators mull bank stress test publication

ZURICH, July 8 (BestGrowthStock) – Swiss banking regulators are
considering publishing stress test results for the country’s
biggest banks UBS and Credit Suisse, as the European Union
prepares to publish stress tests for EU banks later this month.

Switzerland is a not a member of the EU and its banks
therefore are not included in the EU tests, due to be published
on July 23.

Swiss banking regulator FINMA was currently assessing
whether to publish the results, FINMA spokesman Tobias Lux said
on Thursday. Swiss authorities were in regular contact with
their counterparts in the European Union on the issue.

In October, FINMA published general results from regular
stress tests banks are subjected to in Switzerland, saying both
UBS (UBSN.VX: )(UBS.N: ) and Credit Suisse (CSGN.VX: ) could weather a
severe deterioration in the economy. [ID:nL2259274]

Any publication by FINMA would be in close consultation with
the Swiss National Bank (SNB), which is in charge of overall
financial stability in Switzerland.

In the October release, the regulator provided few details
on the assumptions of the stress tests, saying only that the
scenario included a worldwide recession accompanied by a
significant deterioration in financial and property markets.
The SNB published its assessment of the stability of the
country’s financial system in mid-June, saying the situation had
improved overall but risks remained high.

The central bank called for yet another tightening of
capital requirements for UBS and Credit Suisse in order to
absorb losses in the case of another crisis and to limit the
risk of a failure that could drag the economy down.

Switzerland led the global push for tighter bank rules after
the government’s bailout of UBS in autumn 2008, introducing
higher capital requirements, a leverage ratio, a stricter
liquidity regime and new rules for bankers’ pay.

(Reporting by Sven Egenter; Editing by Susan Fenton)

Swiss regulators mull bank stress test publication