Table of Contents
Is UBS better than Credit Suisse?
Credit Suisse scored higher in 1 area: Compensation & Benefits. UBS scored higher in 6 areas: Overall Rating, Senior Management, Culture & Values, CEO Approval, % Recommend to a friend and Positive Business Outlook. Both tied in 2 areas: Career Opportunities and Work-life balance.
What is capital requirement for banks?
(a) Minimum capital requirements. (1) A national bank or Federal savings association must maintain the following minimum capital ratios: (i) A common equity tier 1 capital ratio of 4.5 percent. (ii) A tier 1 capital ratio of 6 percent.
What is the minimum common equity Tier I capital banks have to maintain as per Basel III framework?
The Basel III accord introduced a regulation that requires commercial banks to maintain a minimum capital ratio of 8%, 6% of which must be Common Equity Tier 1.
What is included in tier 2 capital?
Tier 2 capital includes revaluation reserves, hybrid capital instruments and subordinated term debt, general loan-loss reserves, and undisclosed reserves. Tier 2 capital is considered less reliable than Tier 1 capital because it is more difficult to accurately calculate and more difficult to liquidate.
Can tier 2 capital be more than Tier 1 capital?
Tier 2 is designated as the second or supplementary layer of a bank’s capital and is composed of items such as revaluation reserves, hybrid instruments, and subordinated term debt. It is considered less secure than Tier 1 capital—the other form of a bank’s capital—because it’s more difficult to liquidate.
Do systemically important banks in Switzerland have higher capital requirements?
… Systemically important banks have to meet higher capital and liquidity requirements. The systemically important banks in Switzerland are UBS and Credit Suisse, Zürcher Kantonalbank, Raiffeisen and PostFinance. The capital requirements for these banks are listed in detail below.
Are UBS and Credit Suisse required to bolster liquidity positions?
The Swiss regulators are of opinion that both UBS Group UBS and Credit Suisse Group CS are required to bolster their liquidity positions. The observation was a result of an analysis conducted on the country’s systemically important banks.
What are the capital requirements for systemically important banks?
The going concern capital requirements for all systemically important banks consist of the following three elements: Add-ons for market share in the domestic lending and deposit business and for the size of the bank as measured by total exposures Countercyclical capital buffers (applicable to all banks).
What is the concentration risk limit for systemically important banks?
Like other banks, systemically important banks are obliged to limit concentration risks. The standard upper limit for such positions is 25% of Tier 1 capital. The difference for systemically important banks is that the concentration risk vis-à-vis other Swiss or global systemically important banks is limited to 15% of Tier 1 capital.