ZURICH, April 11 (Reuters) - Swiss proposals to better

regulate its banking system and make it safer were welcomed by

the Financial Stability Board on Thursday, which said changes

were particularly important in view of the size of the enlarged

lender UBS.

"We welcome the Swiss government's steps to further

strengthen their Too Big to Fail framework in light of last

year's turmoil," said John Schindler, General Secretary of the

FSB.

"Several of the proposals echo recommendations of our recent

peer review, and if adopted would make the framework stronger,"

he added.