Switzerland’s ‘severe’ bank test details kept secret

25 Jul 2010

Swiss financial regulator FINMA announced that its biggest two banks Credit Suisse and UBS had a tier one capital ratio of at least 8% in an adverse scenario harsher than that used by the Committee of European Banking Supervisors.

“FINMA’s approach is similar to the CEBS approach in its design, but the stress test results are not,” said the regulator in a statement. “Switzerland's specificity in having large banks of great systemic importance requires the design of particularly severe scenarios.”

The regulator declined to publish detailed methodology, on ...

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