SNB Vice Chairman Defends High Capital Levels Amidst Economic Uncertainty

Swiss National Bank Vice Chairman Antoine Martin has stated that banks holding robust levels of capital are not at a commercial disadvantage compared to their rivals. Speaking during an event in Basel, Martin emphasized the importance of having sufficient capital buffers, particularly in times of economic uncertainty.

Martin's comments come as Swiss lawmakers prepare to discuss tougher capital requirements for UBS, one of the country's largest banks. According to the Vice Chairman, banks with higher levels of capital performed well following the global financial crisis by acquiring rivals that struggled financially.

He argued that in an unstable environment, it is preferable for Swiss banks to have robust capital buffers and gain market share from foreign banks that may be more vulnerable to future downturns. However, Martin did not specify any particular lenders or names.