Regulators everywhere would do well to follow the Swiss Financial Market Supervisory Authority (Finma) in making public the minimum capital requirements for its banks based on the risk profile of the bank.
Last year Finma announced the UBS minimum capital targets at 19.2% of risk-weighted assets and an unweighted leverage ratio of 4.6%. For Credit Suisse it was set at 16.7% and 4% respectively.
The targets are substantially more demanding than those set by Basel III rules but it is an understandable position considering that the total assets of these two banks was 4xs GDP at the peak of the crisis. The banks have until 2019 to comply.
Read the recent article in the FT here
More from the Wall Street Journal : “Swiss Regulator Finma Sets Capital Requirements for UBS, Credit Suisse“