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SNB's Martin says "robust" level of capital not a disadvantage for banks - Finance news and analysis from Global Banking & Finance Review
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SNB's Martin says "robust" level of capital not a disadvantage for banks

Published by Global Banking & Finance Review

Posted on August 26, 2026

1 min read

· Last updated: August 26, 2026

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SNB's Martin: Strong Capital Buffers Give Banks a Market Edge Amid Crises

Swiss National Bank's Perspective on Capital Requirements

Robust Capital and Competitive Advantage

BASEL, Aug 26 (Reuters) - Banks holding a "robust" amount of capital are not necessarily at a commercial disadvantage to rivals, Swiss National Bank Vice Chairman Antoine Martin said on Wednesday, as Swiss lawmakers prepare to discuss tougher capital requirements for UBS.

Post-Financial Crisis Performance

Banks with higher levels of capital did well after the global financial crisis because they were able to buy rivals that ran into difficulties, Martin told an event in Basel.

Preference for Strong Buffers in Unstable Environments

"And so in Switzerland, if we think that we're living in an unstable environment, I would prefer our banks to have robust capital buffers and take market share from foreign banks who are going to be in trouble next time there's a downturn," he said, without naming any lenders. 

(Reporting by John Revill; editing by Kirsten Donovan)

Key Takeaways

  • Holding strong capital buffers isn’t a commercial handicap—during crises, better‑capitalized banks can acquire distressed peers and emerge stronger, as noted by SNB’s Antoine Martin.
  • SNB favors robust capital buffers for Swiss banks, arguing they bolster stability and competitive position if foreign banks falter in future downturns.
  • Empirical and policy research supports this view: higher capital buffers can lower banks’ funding costs, reduce risk premiums, enable faster crisis recovery, and improve long‑term stability—often without hurting firm value.

Frequently Asked Questions

Why does SNB's Antoine Martin support robust capital levels for banks?
Martin believes robust capital buffers help banks buy weaker rivals during crises and protect against instability.
Are Swiss banks at a disadvantage with higher capital requirements?
According to Martin, robust capital is not a commercial disadvantage and can help banks gain market share in downturns.
What is being discussed by Swiss lawmakers regarding UBS?
Swiss lawmakers are preparing to discuss tougher capital requirements for UBS.
How did banks with higher capital fare after the global financial crisis?
Banks with more capital performed well, as they were able to purchase troubled rivals.

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