Swiss revamp approach for gauging default risks for banks

ZURICH (Reuters) - Swiss financial markets watchdog FINMA has adjusted the way banks should approach default risks in a principles-based system to take effect at the start of next year, it said on Thursday."The new approaches to the formation of value adjustments for default risks are designed to be proportional. Only systematically important banks are required to model the expected losses in detail in their credit portfolios," it said in a statement.