(PTI): Switzerland is in urgent need of tighter financial regulations than other countries, given the size of its banks relative to its economy, Swiss National Bank Vice-Chairman, Philipp Hildebrand, says.

In a speech in Geneva Wednesday, Philipp Hildebrand, who is to take over as Swiss National Bank (SNB) chairman next year, said the “exceptional” size of the two biggest Swiss banks, UBS and Credit Suisse, means “prudent decision-making” is needed on the regulatory framework to reduce the country’s vulnerability to financial shocks in the future.

“Not all countries are confronted with the same urgency for reform as we are in Switzerland,” he said.

He said SNB was investing a considerable amount of its resources to back international regulatory reform projects in favor of a balanced decision-making, noting that it might not be enough for Switzerland as the total assets of the Swiss banks exceed seven times the nation’s GDP.

“It is interesting and certainly promising to note that the two big Swiss banks now emphasize their strong capital position as an important competitive advantage,” he said.

However, officials of the two large Swiss banks have warned that the strict Swiss financial regulations may put them at a competitive disadvantage urging for a closer coordination with other international regulators.

He called on banks to facilitate reforms rather than resisting them.