ZURICH, June 19 (Reuters) - The Swiss National Bank on Thursday welcomed the “significant progress” made by UBS and Credit Suisse at improving their capital, but urged Switzerland’s two largest banks to improve their leverage ratios.
“The SNB recommends that they continue to improve their resilience and, in particular, their leverage ratios,” the central bank wrote in its annual financial stability report published on Thursday.
The SNB also cautioned on the Swiss housing market and home loan lending, but indicated a slight easing in tension recently.
“Overall, the pace at which the imbalances on the Swiss mortgage and real estate markets grow has slowed recently.”
The financial stability report comes alongside the central bank’s June monetary policy assessment. The SNB’s rate decision is expected at 0730 GMT. (Reporting By Katharina Bart)