Swiss Banks Face $440 Million Hit on Higher SNB Reserve Rule (3)

The Swiss National Bank is requiring banks to hold more money at the institution, a move that will cut how much interest it pays to them.

The central bank is increasing the minimum reserve ratio to 4% from 2.5%, it said in a statement on Monday.

As a result of the changes, the country’s lenders including UBS Group AG face a hit to their revenue of as much as 400 million francs ($440 million), according to an estimate from Raiffeisen Switzerland economist Alexander Koch.

For UBS, it’s the second regulatory setback in Switzerland this month. New rules proposed by ...