Traditional Swiss residential properties in Bern, Switzerland, on Tuesday, Aug. 17, 2021. Surging property prices mean Switzerland's residential property market is close to a bubble, according to a UBS Group AG gauge.
, Bloomberg
(Bloomberg) --
The Swiss government ordered banks to hold additional capital as a buffer against risks posed by the country’s property boom.
Banks will be forced to hold an extra 2.5% of risk-weighted assets linked to domestic residential mortgages, the government in Bern said in a statement Wednesday. The rules apply from Sept. 30.
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