February 13, 2013 / 12:16 PM / in 5 years

STOCKS NEWS EUROPE-Swiss banks hit by govt mortgage mkt measures

Shares in Swiss banks UBS and Credit Suisse fall after the Swiss government says it will demand banks hold additional capital to dampen mortgage activity.

At 1028 GMT shares in UBS are trading 0.6 percent lower at 15.53 francs, while shares in Credit Suisse are down 0.9 percent at 26.73 francs. The European banking sector index is 0.5 percent lower.

“I don’t expect there to be too much of an impact on the bigger banks really,” says Andreas Venditti, an analyst at ZKB.

“It (the buffer) is just on Swiss mortgages, a small part of their total risk-weigted assets. The range that could be activated was 0-2.5 percent, so we are in the lower half of that.”

Shares in Valiant were down 0.9 pct at 199.20 francs.

“For smaller banks doing this kind of lending the impact is much larger. Even so, growth rates in mortgage lending have come down after banks were told to be more cautious in lending,” Vendetti says.

Reuters messaging rm://caroline.copley.reuters.com@reuters.net

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