Subprime crisis could hit other markets

THE subprime crisis is not over yet and could spread to other credit markets, making it important that banks have a strong capital base, a Swiss regulator and prominent member of the Basel Committee said.

“The danger is not over yet. The subprime crisis could spread to other credit markets, such as in the fields of credit cards, consumer credit, car financing, student loans or commercial credit,” Daniel Zuberbuehler, head of the Swiss Banking Authority (EBK), told newspaper NZZ am Sonntag in an interview published on Sunday.

Mr Zuberbuehler also sits on the Basel Committee on Banking Supervision, which sets standards for internationally active banks and advises on how much capital they should set aside against risks.