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UBS faces stricter capital rules after Swiss Council of States vote
The Swiss Council of States has approved stricter capital requirements for systemically important banks, specifically targeting UBS. The new regulations mandate that the bank must back its foreign subsidiaries with 90 percent Common Equity Tier 1 (CET1) capital.
The decision, passed with 33 votes in favor and 10 against, rejects a milder compromise that would have allowed for a 50 percent CET1 requirement supplemented by AT1 bonds. Finance Minister Karin Keller-Sutter had advocated for even stricter 100 percent requirements to mitigate systemic risk and prevent a repeat of the Credit Suisse crisis.
UBS has expressed strong opposition, stating that the 90 percent requirement will cause long-term damage to its international competitiveness and business model. Leadership has indicated that extreme measures, including relocating the group headquarters outside of Switzerland or splitting the conglomerate, are being discussed in response to the regulatory pressure. The Swiss Bankers Association also criticized the move, calling it an 'extreme special path' that deviates from international standards in the US, UK, and Europe.
Entities
Colm Kelleher · Council of States · Karin Keller-Sutter · Sergio Ermotti · Swiss Bankers Association · Swiss Council of States · UBS
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 6 SOURCES] The Council of States approved changes to the Banking Act requiring UBS to back its foreign subsidiaries with 90 percent Common Equity Tier 1 (CET1) capital. www.bilanz.ch · www.it-boltwise.de · www.cash.ch · www.moneycab.com · www.blick.ch
- [● 2 SOURCES] Finance Minister Karin Keller-Sutter advocated for a 100 percent CET1 requirement for foreign subsidiaries to prevent systemic risk. www.blick.ch
- [● 4 SOURCES] UBS argues that the 90 percent CET1 requirement will damage its long-term competitiveness and business model. www.bilanz.ch · www.elperiodico.digital · www.cash.ch · www.blick.ch
- [● 2 SOURCES] UBS leadership is considering extreme options such as moving the group headquarters outside of Switzerland or splitting the conglomerate. www.elperiodico.digital · insideparadeplatz.ch
- [● 2 SOURCES] The Council of States passed the measure with 33 votes in favor, 10 against, and two abstentions. www.bilanz.ch · www.cash.ch
- [○ 1 SOURCE] The Swiss Bankers Association described the decision as an 'extreme special path' that deviates significantly from international standards in the UK, US, and Europe. www.moneycab.com