By Andrew Morse
ZURICH--Switzerland's central bank said Thursday the country's
big banks had continued to make improvements in their capital
positions, but urged the lenders to not to lose momentum in their
progress.
In its annual stability report, the Swiss National Bank said the
country's big banks, including UBS AG and Credit Suisse Group AG,
should continue improving their leverage ratios, key measures of
stability that broadly reflect the capital banks have relative to
their loans and investments.
"Over the past year, the Swiss big banks have continued to
improve their capital situation, albeit at a slower pace than the
year before," the Zurich-based central bank said. The SNB said the
big banks already meet many Swiss and international requirements
that come into effect in 2019.
UBS and Credit Suisse have taken steps to boost their respective
leverage ratios. Earlier this year, UBS reported its leverage ratio
stood at 4.3% as of the end of the first quarter of this year,
while Credit Suisse said its leverage ratio was 4.2%.
Leverage and other capital ratios are becoming more important
because investors focus on the measures during times of stress.
In April, Credit Suisse said another measure of stability, its
tier 1 capital ratio, fell slightly to 10% after a sharp rise in
the Swiss franc eroded the reported value of capital denominated in
other currencies.
Write to Andrew Morse at andrew.morse@wsj.com