At a meeting between Swiss Finance Minister Karin Keller-Sutter and her British couterpart, Chancellor of the Exchequer Rachel Reeves, in London, US regulation was apparently one of the topics of discussion. Both are likely concerned about a potential weakening in the competitive standing of their own financial centers.

«We also discussed what Donald Trump's election as the new US president could mean in terms of banking regulation,» Karin Keller-Sutter told the «Reuters» news agency on Thursday evening following her visit to London.

«It was mentioned beforehand that a wave of deregulation was expected in the USA. That's something we are both certainly monitoring,» she said. Reeves and Keller-Sutter agreed that a balance had to be found between competitiveness and stability.

Different Starting Positions

Keller Sutter intends to wait and see what unfolds in the USA over the coming months, noting, that it's still too early to discuss possible responses. «We certainly need to keep an eye on this,» she said.

She referred to the differences between the countries. Switzerland is in a different starting position, she said, because UBS is much larger in terms of the country's economy than a major US bank compared to its economic output.

«When I say balance between security and stability, one issue is of course that risks that arise in another financial center are also risks for us.»

These issues also need to be addressed within the international supervisory organization Financial Stability Board.