US EditionSwiss government proposes tough new capital rules in major blow to UBS
- The Swiss Federal Council on June 6, 2025, proposed new capital regulations requiring UBS to increase core capital by up to $26 billion to fully back its foreign subsidiaries.
- These rules follow UBS's 2023 takeover of the collapsed Credit Suisse and respond to perceived weaknesses in the regulatory framework exposed by that crisis.
- The proposal includes a six- to eight-year phase-in period, reduction of $8 billion in Additional Tier 1 bonds, and aims to strengthen bank resilience and financial system stability.
- UBS called the capital demand 'extreme' and said it would assess measures to mitigate negative effects on shareholders, while analysts warn the rules may reduce returns by 1-2 percentage points and competitiveness.
- The new regulations pose a challenge between financial safety and UBS's growth, with concerns over possible international business sales and impact on Switzerland's position as a financial hub.
37 Articles
37 Articles
The political process is only starting for the regulatory package. A broad-based compromise also carries risks.
UBS Faces $26 Billion Swiss Capital Demand: What’s at Stake for the Bank and Switzerland
The Swiss government announced on June 6, 2025, that UBS must boost its core capital by up to $26 billion. This move follows UBS’s 2023 takeover of Credit Suisse after its collapse. Swiss authorities say the new rules will protect the country’s economy and financial system. UBS, now with a balance sheet over $1 trillion, […]
UBS Slams ‘Extreme’ $26 Billion Capital Demand in Swiss Proposal
(Bloomberg) -- UBS Group AG said it would examine steps to mitigate the effects of the Swiss government’s proposal for as much as $26 billion in fresh capital requirements, calling the demand “extreme” and vowing to continue its push to dilute the regulations.
The government has learned lessons from the CS crisis. The most politically controversial decision concerns stricter capital requirements for UBS. But the last word is Parliament or even the people.
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