Swiss banks tipped to retain stability

The Swiss banking sector is strong enough to withstand negative interest rates, the strong franc, the heating housing market and volatile market conditions, according to ratings agency Moody’s. Swiss banks were given a clean bill of health by Moody’s despite concerns over the performance of some banks, particularly Credit Suisse that has seen its stock price plummet this year. Switzerland’s second largest bank has been forced to defend itself against suspicions that it is not well capitalized enough to withstand shocks. "Swiss banks continue to have very low problem loan ratios and sound capital buffers, as well as limited reliance on confidence-sensitive capital market funding and adequate loss absorption capacity," stated Michael Rohr, a Senior Credit Officer at Moody's. The ratings agency believes the Swiss economy will grow by 1.4% this year, rising to 1.7% in 2017 with unemployment to remain low and stable. Mortgage mountain Researchers at Moody’s declared ...