Finance Minister Hans-Rudolf Merz has met British Chancellor of the Exchequer Alistair Darling in London to discuss the turbulent financial markets.

The ministers appraised the financial situation and the fallout that their respective countries are facing after three major financial institutions in the United States failed on Monday.

Merz emphasised the need for cooperation between central banks and regulatory agencies and for an increase in equity capital for large Swiss banking houses. Both agreed on the need for international cooperation to prevent future financial crises.

Merz also emphasised reforms to strengthen Switzerland's position in international tax schemes and used the opportunity to point out the particularities of the Swiss federal system.

The finance ministry said later in a statement that Switzerland and Britain enjoy an "outstanding relationship" and have accords in place to help fight financial crime.

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