Swiss delay report on to too-big-to-fail solutions

ZURICH Aug 26 (Reuters) - A Swiss government commission report with recommendations to limit the risk of a possible failure of one of the country's large banks dragging down the whole economy will be delayed until new global banking rules have become clear.

The "too-big-to-fail" commission would publish its final report at the end of September 2010, the government said on Thursday.

"Although the work is at an advanced stage, the experts believe that it will not be possible to give concrete specifications, particularly regarding capital adequacy requirements, until the international minimum standards of the Basel Committee on Banking Supervision have been determined," the government said.

Originally, the commission had planned to publish the report by end-August so parliament could start discussions about new laws in its autumn session.

The commission is made up of high-ranking regulators such as Swiss National Bank vice-chairman Thomas Jordan and top managers from banks and insurers, as well as scientists and representatives of other sectors of the economy. In the interim report published in April, the commission suggested new rules should make it possible to break off parts of a bank that are relevant to the functioning of the wider economy if a bank becomes insolvent.

Switzerland has led the global push for tighter banking regulation requiring big banks to hold more capital and to meet stricter rules on liquidity after the country had to rescue its largest bank, UBS (UBSN.VX)(UBS.N), at the height of the financial crisis.[ID:nLDE63L1FD]

(Reporting by Sven Egenter)