Swiss government OKs regulatory approach for big banks

FILE PHOTO - A longtime exposure shows the buildings of Swiss banks UBS and Credit Suisse at the Paradeplatz square in Zurich, Switzerland November 20, 2017. Picture taken with long exposure. REUTERS/Arnd Wiegmann

ZURICH (Reuters) - The Swiss government does not see any need for fundamental changes in the way big banks including UBS Group UBSG.S and Credit Suisse CSGN.S are regulated, it said on Wednesday after a review it does every two years.

“However, the Federal Council considers it necessary to make specific adjustments to the gone-concern capital requirements for Swiss units of the two big Swiss banks,” it said, citing proposals released in April.

“The Federal Council also sees a need for clarification regarding the discount system, the staggered timing of bail-in bonds (conversion of debt into equity) and the liquidity requirements for systemically important banks.”

Reporting by Michael Shields; Editing by Michelle Martin