BERNE (Reuters) - The Swiss government pushed ahead on Wednesday with plans to make UBS and Credit Suisse reach tough new capital standards, saying the benefit to the economy outweighed costs to the banks.
As it made its formal recommendation to parliament, the Swiss cabinet said the main direction of the draft law it issued in December was unchanged but it had made a few minor changes following a consultation period.
The government has proposed both big banks will need an equity Tier 1 capital ratio of at least 10 percent, versus the 7 percent minimum set under the Basel III global standards which begin to take effect in 2013.
Both UBS and the powerful right-wing Swiss People's Party (SVP) have warned the plan risks making UBS and Credit Suisse less competitive, raising questions about whether the rules might be watered down during the legislative process.
(Reporting by Catherine Bosley)