UBS Group warns "far-reaching consequences" of Swiss capital plan
Idag, 18:23
(Alliance News) - UBS Group AG on Wednesday said a Swiss regulatory plan will reduce its CET1 capital by USD4 billion.
The Swiss government announced on Wednesday that it was pressing ahead with tightening banking regulations, with a draft law that would force UBS to set aside an additional USD20 billion in capital to cover its foreign subsidiaries.
The government – stung by the implosion of Switzerland's second-biggest bank Credit Suisse in 2023 – wants to strengthen capital requirements so that UBS, which was strong-armed into taking over its closest domestic rival, could fully cover its holdings in foreign subsidiaries in the event of a shock.
"The Swiss Federal Council published its final Capital Adequacy Ordinance specifying the regulatory capital treatment of select assets for banks headquartered in Switzerland. As well as publishing the final CAO, the Federal Council also submitted to parliament its final proposal for amendments to the Banking Act that governs the capital treatment of foreign participations of systemically important banks. This proposal will now be deliberated by parliament in the normal course of business," UBS said.
"UBS continues to strongly disagree with the proposed package, which is extreme, lacks international alignment and disregards concerns expressed by the majority of respondents to the government's consultations. If adopted, the proposed measures would have far-reaching consequences for the Swiss economy."
UBS said the proposed changes, when fully implemented, are to "eliminate approximately USD4 billion of net CET1 capital at the group".
"This would reduce the CET1 capital ratio at UBS Group by around 0.8 percentage points," it added.
"The materials published by the Swiss government today contain assertions that we believe to be misleading. Considering UBS has just received this information, it is in the process of thoroughly evaluating all documents and statements made during the Federal Council's press conference."
The company said it will provide "additional comments" in its first quarter results on April 29.
UBS shares rose 0.2% to CHF33.54 in Zurich on Wednesday.
By Eric Cunha, Alliance News news editor
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
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UBS Group warns "far-reaching consequences" of Swiss capital plan
Idag, 18:23
(Alliance News) - UBS Group AG on Wednesday said a Swiss regulatory plan will reduce its CET1 capital by USD4 billion.
The Swiss government announced on Wednesday that it was pressing ahead with tightening banking regulations, with a draft law that would force UBS to set aside an additional USD20 billion in capital to cover its foreign subsidiaries.
The government – stung by the implosion of Switzerland's second-biggest bank Credit Suisse in 2023 – wants to strengthen capital requirements so that UBS, which was strong-armed into taking over its closest domestic rival, could fully cover its holdings in foreign subsidiaries in the event of a shock.
"The Swiss Federal Council published its final Capital Adequacy Ordinance specifying the regulatory capital treatment of select assets for banks headquartered in Switzerland. As well as publishing the final CAO, the Federal Council also submitted to parliament its final proposal for amendments to the Banking Act that governs the capital treatment of foreign participations of systemically important banks. This proposal will now be deliberated by parliament in the normal course of business," UBS said.
"UBS continues to strongly disagree with the proposed package, which is extreme, lacks international alignment and disregards concerns expressed by the majority of respondents to the government's consultations. If adopted, the proposed measures would have far-reaching consequences for the Swiss economy."
UBS said the proposed changes, when fully implemented, are to "eliminate approximately USD4 billion of net CET1 capital at the group".
"This would reduce the CET1 capital ratio at UBS Group by around 0.8 percentage points," it added.
"The materials published by the Swiss government today contain assertions that we believe to be misleading. Considering UBS has just received this information, it is in the process of thoroughly evaluating all documents and statements made during the Federal Council's press conference."
The company said it will provide "additional comments" in its first quarter results on April 29.
UBS shares rose 0.2% to CHF33.54 in Zurich on Wednesday.
By Eric Cunha, Alliance News news editor
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
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