SNB welcomes Obama plans on curbing bank risk-WSJ

* Says SNB extremely interested in Obama plans

* Supportive on ensuring some bank activities don't "explode"

* Not acceptable to have risk focused on non-client business * Says more work needs to be done on "too big to fail"

ZURICH, Jan 22 (Reuters) - Swiss National Bank Chairman Philipp Hildebrand welcomed on Friday plans by U.S. President Barack Obama to curb risk-taking activities by banks, according to a Wall Street Journal report.

"The proposal yesterday is certainly something we are extremely interested in," Hildebrand was quoted as saying in an interview published on Friday.

"And, broadly speaking, we are very supportive of making sure certain activities, like prop trading activities, must not be allowed to grow again the way they did or really explode again."

The central banker said that it was not acceptable to have "vast, huge risk focused on prop trading - narrowly defined - that has nothing to do with client business but essentially puts the capital of the bank at risk in a highly leveraged manner."

Mindful of the problems it suffered in 2008, Swiss flagship bank UBS (UBSN.VX)(UBS.N) has acted to curb prop trading and slash its balance sheet. Competitor Credit Suisse, which did not need state aid in the credit crisis, has nonetheless also moved in this direction.

Analysts say the banks are less dependent on prop trading than some foreign counterparts and have a more balanced business mix due to their large wealth management divisions.

Hildebrand, who stepped up to become SNB Chairman on Jan. 1, reiterated more need to be done on the "too big to fail", which he has said in December it was the biggest challenge to the industry. (Editing by Andy Bruce)