Financial Times FT.com

Switzerland looks at cutting size of banks

By Jennifer Hughes and Patrick Jenkins in London and Tony Barber and George Parker in Brussels

Published: June 18 2009 13:31 | Last updated: June 19 2009 08:59

Switzerland upped the ante in a global regulatory assault on the banking industry on Thursday as its central bank warned that Zurich was examining the forced shrinkage of banking groups such as UBS and Credit Suisse to contain the risks posed by their size.

The central bank is looking at imposing constraints on the size of its biggest domestic banks unless global policymakers can come up with a new system to deal with large banks when they fail.

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