SWISS URGE CLOSING LOOPHOLES IN BANK REGULATION
The loopholes in Swiss banking supervision
must be closed in a step-by-step manner, Swiss National Bank
Vice-President Markus Lusser said.
    The integration of financial markets had blurred the
distinction between banks and bank-like finance companies, and
the varying degree of regulation of the two sectors had a
destablizing effect, he told the Association of Foreign Banks.
    "It is in the interest of all market participants that these
institutes (finance companies) be brought as soon as possible
under banking supervision," he said in remarks prepared for
delivery to the association's annual meeting.
    It was important, however, that bringing finance companies
under the banking law did not undermine Switzerland as a
financial marketplace, Lusser said.
    "It is decisive for its future that it succeeds in
attracting and holding a wide variety of banks, financial
intermediaries and financial experts," he said.
    Lusser also urged greater harmonization of regulatory
practice with other countries in view of the integration of
world markets and the internationalization of the banking
business.
 REUTER
