November 11, 2013 / 7:56 AM / 4 years ago

Switzerland classifies ZKB as systemically important bank

ZURICH (Reuters) - The Swiss National Bank (SNB) (SNBN.S) said on Monday has added Zuercher Kantonalbank (ZKB) to its list of banks that come under closer supervision due to their importance to the wider financial system.

The company's logo is seen at an office building of Swiss bank Zuercher Kantonalbank (ZKB) in Zurich February 8, 2013. REUTERS/Arnd Wiegmann

ZKB joins UBS UBSN.VX and Credit Suisse CSGN.VX, which are already considered systemically important by Switzerland’s central bank.

In most jurisdictions, banks whose stability is considered essential for the well-being of the financial system are required to meet tougher regulatory requirements, such as holding a bigger capital cushion to protect itself against potential market shocks.

The SNB declined to provide details on Monday on the implications for ZKB.

ZKB confirmed the move, but declined further comment ahead of a media briefing scheduled for 1300 GMT.

Reporting by Silke Koltrowitz; Writing by Mark Potter; Editing by Greg Mahlich

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