Debate Emerges Over Lower Capital Requirements for UBS Foreign Subsidiaries
5 Articles
5 Articles
The Federal Council and the UBS cannot agree on the issue of the bank's capital allocation. Another compromise proposal is now coming from Parliament. UBS can hope for milder requirements.
By wanting to require UBS to cover 100% of its foreign subsidiaries with CET1 own funds, Bern wants to add up to $20 billion of capital to the balance sheet of the only large Swiss bank, at the risk of triggering an unprecedented arm of arms with Parliament and the markets.
BERNA.— Swiss legislators are discussing a new proposal to ease the capital requirements that UBS will face. If approved, the initiative could reduce by billions of dollars the additional burden that the bank should assume under the bill presented by the government, according to sources consulted by Reuters. The legislation sent to Parliament in April seeks to tighten banking regulation to avoid a repetition of the collapse of Credit Suisse. To …
Debate Emerges Over Lower Capital Requirements for UBS Foreign Subsidiaries
The planned 100 per cent capital backing requirement for UBS’s foreign subsidiaries is one of the key sticking points in the proposed reform of Switzerland’s banking regulation for large banks. According to a media report, parliamentarians are discussing a possible reduction to between 70 and 80 percent.
The planned 100 percent capital support for UBS foreign subsidiaries is one of the most important issues in the planned reform of the large bank regulation. According to a media report, the parliament is discussing a reduction to 70 to 80 percent.
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