Switzerland's two biggest banks UBS and Credit Suisse are 'well capitalised' and there is no reason for the government to intervene in their operations, a finance ministry spokeswoman said today.
'UBS and Credit Suisse are well capitalised institutions; state intervention is not necessary,' the spokeswoman said.
'The finance ministry is in close contact with the Federal Banking Commission and the Swiss National Bank, which follow closely the development of the markets,' she added.
UBS is among the world's worst hit banks by the US sub-prime home loan collapse and has been forced to write down more than $42 billion of its assets since the beginning of the crisis.
Credit Suisse has written down about 10 billion Swiss francs.
The finance ministry spokeswoman said Swiss banks were not facing the worst while adding that contingency plans were in place in case the position deteriorated.
