ZURICH (Reuters) - Shares in Swiss banks UBS
Swiss Finance Minister Eveline Widmer-Schlumpf was quoted as saying in a newspaper interview on Sunday that Swiss banks should be subject to higher leverage ratio requirements of 6-10 percent, stricter than the ratio set out by Basel III rules.
Shares in UBS were down 2.7 percent at 8:34 a.m. British time, while Credit Suisse fell 2.8 percent, lagging a 0.1 percent weaker European banking sector index <.SX7P>.
Broker J.P.Morgan Cazenove said in a note a 6 percent leverage ratio requirement would create "material uncertainty".
"Over time any such potential move could lead to further shrinkage of the FICC (fixed income, currencies and commodities) division for the Swiss investment banks, especially at Credit Suisse Group," the analysts said.(Reporting by Silke Koltrowitz)