By Brenna Hughes Neghaiwi
ZURICH (Reuters) – Economic and financial conditions for the Swiss banking sector have deteriorated markedly due to the COVID-19 pandemic, the Swiss National Bank said on Thursday, but big banks UBS (S:) and Credit Suisse (S:) are favourably placed to manage challenges.
“The simultaneous deterioration in the economic situation in all regions of the world, together with the unusually high level of uncertainty, poses significant challenges for the two globally active Swiss banks, Credit Suisse and UBS,” the central bank said in its 2020 financial stability report.
“However…both of the globally active Swiss banks are well placed to face the challenges posed by the current difficult
environment and support the real economy. This favourable
situation is attributable to risk reduction and, in particular,
to the build-up of capital buffers over recent