| Switzerland’s Federal Council is taking action against an excessive rise in prices in the real estate market and exorbitant mortgage debt. At a recent meeting, the Federal Council decided to accept the application of the Swiss National Bank (SNB) and to partially activate the countercyclical buffer. This means that from September 30, 2013, banks will be obliged to hold additional capital for residential mortgages.
Based on the Capital Adequacy Ordinance (CAO), the SNB can request the Federal Council to oblige the banks to hold additional capital in the form of a countercyclical buffer. The SNB submitted the corresponding application to the Federal Council on February 5, 2013...........................................Full Article: Source
|