Analysis-Swiss banking plan leaves 'relieved' UBS out of immediate firing line

ZURICH - UBS could take years to feel the bite of new regulations after the Swiss government set out plans aimed at keeping the "monster bank" in line that were light on detail and heralded a tortuous political process to enshrine them in law.

Switzerland said that capital demands could be adjusted to reflect exposure to international subsidiaries, as well as lenders' governance, complexity and profitability, without setting specific thresholds. The measures were not intended to be a major shake-up, but a series of steps aimed at putting more safeguards in place to reduce risk in the banking sector, the person said.

Peter V Kunz, a regulatory expert at the University of Bern, described the proposals as a typically Swiss compromise.Effective measures would need to be international, he said, noting: "Switzerland cannot do everything on its own."

Source: Financial Digest (financialdigest.net)

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