Switzerland gets extra tough with its banks.

Even the well reputated Swiss banks suffered hard from the economic crisis, to reassure their clients and keeping them from fleeing the Swiss banks, a governmentcreated committee of experts recommended measures for the two biggest banks in Switzerland, UBS and Credit Suisse.
The measures require the banks to keep core capital of 10%  of risk-adjusted assets and 9% of contingent-capital, the past has shown us that this high buffer is necessary. The banks now have to see if it is possible to fulfill the requirements with their small corporate-bond market, but the Swiss firms appear confident.The article suggests that other large global firms will follow their lead and augment their core capital so that they are stronger in a crisis.

Liesanne Miclotte

http://www.economist.com/node/17202233