Swiss banking giant, UBS and Credit Suisse to protest rising above 19% CAR

SWISS. Two leading Swiss banks UBS and Credit Suisse which staged a protest against the draft banking legislation that would raise the capital adequacy ratio of 19%. It was delivered by UBS and Credit Suisse officials at a meeting of a parliamentary commission to discuss draft law on the too big too fail in the Swiss financial firms.

Capital ratio is expected to more than 19% are in contrast very far from Basel III agreement that only 10.5%. UBS and Credit Suisse consider this to be burdensome and reduce their competitiveness. The two giant banks is known to have a balance sheet which, when combined value more than doubled the Swiss economy.

In response to these protests, the monetary authorities of the Swiss National Swiss bank confirmed that Swiss banks must be protected from the possibility of growing very large so it will be included in the category of too big too fail.