The Swiss, fearing their economy could collapse under the failure of one of their large banks, have roughly doubled up capital requirements for UBS and Credit Suisse, asking each bank to hold some 75 billion Swiss francs in capital, in common equity and new financial instruments called contingent convertible bonds. Read our coverage here.

The strict rules, known as “Swiss finish” to the new Basel III banking rules, are, however, less stringent than many investors and analysts had feared, because the amount of common equity to be held by the two banks is only slightly higher than prescribed under the international rules.

Instead of holding 7% in common equity against risk-weighted assets, UBS and Credit Suisse will have to own 10% of common equity, something which both banks are expected to attain shortly after the new measures are expected to come into effect in 2013.

Tougher rules for bigger banks: Here's the start.

Financial Stability Board Chairman Mario Draghi renewed calls for capital rules for the largest lenders that go beyond the Basel III proposals earlier this month from global regulators.

Draghi said in Paris today that systemically important financial institutions should have the ability to absorb more losses than smaller banks. Draghi, who is also governor of the Bank of Italy, made similar comments in newspapers in the U.K. and his home country earlier this month.

...Adair Turner, the chairman of the U.K. financial regulator, last week also said he would have set higher capital requirements for systemically important banks.

The regulators and central bankers at the FSB are studying what types of extra capital beyond the Basel III requirements could be sought for the largest lenders, including capital surcharges, contingent capital such as convertible bonds, or “bailed-in assets.”

“The FSB and the Basel committee have been very clear about this issue -- there will be some sort of additional capital requirement coming for the biggest banks soon,” said Barbara Matthews, managing director of BCM International Regulatory Analytics LLC in Washington. “Big banks should be worried, and are already worried, because the combination of all these new rules will have a great impact on their business models and profitability.”