Moody's maintains stable outlook on Swiss banking system expects Swiss GDP to grow 1.4 pct in 2016

Moody's Investors Service on Wednesday maintained a stable outlook on Switzerland's banking system. In its latest review of the Swiss banking and financial sector, the US ratings agency said that it expects bank creditworthiness will evolve in Switzerland over the next 12 to 18 months.

Moody's noted that Swiss banks continue to have very low problem loan ratios and sound capital buffers amid solid operating environment. The stable outlook mirrors the agency's expectation of solid operating conditions despite challenges of low interest rates and house price inflation.

Moody's also expects Swiss banks to be able to maintain their above-average capital ratios and continue to gain from benign funding and liquidity conditions, underpinned by the nation's role as a safe-haven for investment. Moody's expects Swiss GDP to grow 1.4 percent in 2016 and around 1.8 percent in 2017, up from 0.8 percent in 2015.