(In headine fixes transposed letters in "Switzerland")
ZURICH, April 7 Swiss banks will have to
maintain a leverage ratio of 3 percent under draft proposals
unveiled on Friday by the finance ministry that will also apply
to small banks that have no minimum leverage ratios now.
Banking regulators around the world have been working on
rules to strengthen banks following the 2007-2009 financial
crisis. The leverage ratio measures banks' core capital as a
percentage of total assets without adjusting them for risk
weightings. It helps to ensure banks have enough capital to
support their lending.
The finance ministry also proposed a risk concentration rule
which would in principle bar banks from having large exposures
exceeding 25 percent of core capital.
"There will be further changes for the financing of
residential properties and for Swiss mortgage bonds," it said.
The ministry said these proposed revisions to Swiss capital
adequacy rules implement two additions to the international
standards for banks known as Basel III.
There is a consultation period for the proposals which runs
until July 14. Final revisions should take effect in January
2018 for the leverage ratio and in January 2019 for risk
(Reporting by Michael Shields and Oliver Hirt. Editing by Jane