The Swiss National Bank (SNB) has emphasized ongoing economic uncertainty in its 2025 Financial Stability Report, pointing to several risk factors that could worsen the impact of potential global financial shocks. Among these risks are high public debt levels globally, overvalued real estate, corporate bonds, and U.S. stock markets. Despite these challenges, Switzerland’s banking sector showed improved profitability in 2024, largely driven by UBS. The SNB noted that capital ratios remained stable, with banks maintaining significant liquidity buffers to ensure resilience. However, the SNB urged addressing regulatory weaknesses to strengthen the financial system, supporting measures proposed by the Swiss government. These include stricter capital requirements for UBS, which acquired Credit Suisse in 2023. The SNB described the government’s approach as optimal for financial stability.
— new from Reuters
