UBS and Credit Suisse shares fall as stricter capital rules loom
ZURICH Nov 4 (Reuters) - Shares in Swiss banks UBS and Credit Suisse were down almost 3 percent in early trading on Monday after media reported Swiss politicians were considering tightening capital requirements for Swiss banks.
Swiss Finance Minister Eveline Widmer-Schlumpf was quoted as saying in a newspaper interview on Sunday that Swiss banks should be subject to higher leverage ratio requirements of 6-10 percent, stricter than the ratio set out by Basel III rules.
Shares in UBS were down 2.7 percent at 0834 GMT, while Credit Suisse fell 2.8 percent, lagging a 0.1 percent weaker European banking sector index.
Broker J.P.Morgan Cazenove said in a note a 6 percent leverage ratio requirement would create "material uncertainty".
"Over time any such potential move could lead to further shrinkage of the FICC (fixed income, currencies and commodities) division for the Swiss investment banks, especially at Credit Suisse Group," the analysts said. (Reporting by Silke Koltrowitz)
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