Swiss banking rules: Helpful reminders

Shutting the stable door after the horses bolt can have some value. At least that’s how Swiss regulators must see it. They are imposing stiff new capital adequacy requirements on UBS, Switzerland’s troubled national banking champion, and its main rival, Credit Suisse. The authorities also have introduced a leverage ratio for both banks, measuring capital against total - rather than risk-weighted - assets. The reforms are designed to provide a fatter cushion to absorb potential losses. That’s a r...