The Swiss government said Monday that a final report on how to insulate Switzerland's finance sector from a collapse of one or both major banks UBS AG (UBS) and Credit Suisse Group (CS) is expected by the end of the month, adding a "Swiss finish" to tougher capital measured agreed by international regulators this weekend in Basel.

A Swiss commission of experts preparing recommendations for the government last month postponed the publishing date of its final report by roughly one month in order to take into account international bank capital requirements, which were agreed Sunday.

While the Swiss banks are lauded by experts for their strong capitalization compared with rivals in Europe and further afield, UBS and Credit Suisse face tougher requirements than many rivals as a result of the too-big-to-fail measures.

Analysts said that while the reforms agreed in Basel aren't as harsh as expected, the Swiss regulator typically requires a "Swiss finish," meaning the international rules are translated more forcefully in Switzerland than elsewhere. Monday, a spokesman for regulator Finma declined comment.

Last week, Swiss National Bank president Philipp Hildebrand reinforced his calls for swift, effective legislative measures to mitigate risks from UBS or Credit Suisse failing, during budget hearings before a parliamentary commission. The two banks, repeatedly termed too big to fail by the SNB, are a key concern to the central bank because they make for such a large portion of Switzerland's finance industry, which in turn makes for a sizable portion of gross domestic product.

The expert body, which includes representatives from the SNB, the regulator Finma as well as UBS and Credit Suisse, already proposed initial measures this spring, including more capital. The final report is expected to be submitted to the government at the end of this month, a finance department spokesman said.

Specific capital measures the commission is backing are so-called contingent convertible--or Coco--bonds, which can convert into shareholders' equity in the event of a bank crisis. Banks must also hold enough liquidity to withstand an unspecified period of crisis without outside help, the commission said in April.

The measures are expected to crimp shareholder payouts, because the banks will hold back profits in favor of bolstering capital ratios. A spokesman for Credit Suisse declined to comment, while UBS wasn't immediately available for comment on the planned too-big-to-fail measures.

The specter of a major Swiss bank failure akin to the September 2008 collapse of Lehman Brothers was brought into sharper focus by the 2008 shore-up of UBS, which received government aid after writing down more than $50 billion in mortgage-related securities. The bank has since righted itself, posting several quarters of profit in a row and nearly stanching outflows of wealthy client funds.

By contrast, Credit Suisse didn't take government aid in 2008, but did replenish its capital privately to meet a first wave of capital rules put in place by the Swiss regulator as a response to the financial crisis.

-By Katharina Bart, Dow Jones Newswires; +41 43 443 8043; katharina.bart@dowjones.com