ZURICH, June 19 Reuters Switzerland39;s financial regulator on Wednesday ruled that the UBS takeover of Credit Suisse did not create any competition concerns, despite recommendations from the country39;s antitrust watchdog that it merited further scrutiny.

Debate has been vigorous in Switzerland about the size and power of UBS, which analysts say has a dominant position in areas such as Swiss loan and debt markets since it took over Credit Suisse last year in a stateengineered rescue.

The merger of UBS and Credit Suisse will not eliminate effective competition in any market segment, Swiss financial regulator FINMA said in a statement.

The decision follows a more critical report, only made public by the regulator on Wednesday, by Swiss competition authority COMCO. The report was sent in September to FINMA, whose decision has essentially drawn a line under the issue.

FINMA said it will continue to closely monitor the UBSCredit Swiss integration from a supervisory perspective

After FINMA39;s report, UBS said it will carry on implementing its integration of Credit Suisse. Shares in the bank nudged up after FINMA made its announcement, but later slipped again and were trading slightly down by around 0830 GMT.

COMCO39;s 173page report concluded by recommending that FINMA not only open a preliminary review, but also a more indepth examination of the matter, confirming reporting earlier this year by Reuters that had flagged the watchdog39;s concerns.

While saying there…