A Swiss government expert group Monday proposed measures to better protect Switzerland's economy from a potential failure of UBS or Credit Suisse, which would require the two major banks to stow more and better-quality capital.

The measures add an additional, tougher "Swiss finish" to the country's adoption of new international Basel III bank reforms, which were agreed last month and come into force in 2013, with a transition period stretching to the end of 2018.