Swiss National Bank Official Rejects Disadvantage Claim on High Capital Requirements

The Swiss National Bank's Vice Chairman Antoine Martin made comments on capital requirements for banks in Switzerland. Banks holding a 'robust' amount of capital are not necessarily at a commercial disadvantage to rivals, according to Martin. This statement comes as Swiss lawmakers prepare to discuss tougher capital requirements for UBS.

Banks with higher levels of capital performed well after the global financial crisis because they were able to buy out rivals that struggled, Martin explained. He suggested that in an unstable environment, it is preferable for banks to have robust capital buffers and take market share from foreign banks that may be struggling in a future downturn.