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UBS CEO against reducing bank's size in face of regulatory concerns
Published by Global Banking and Finance Review
Posted on September 5, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 5, 2025
2 min readLast updated: January 22, 2026
UBS CEO Sergio Ermotti opposes reducing the bank's size amid Swiss regulatory pressure, focusing on resilience after the Credit Suisse takeover.
BADEN, Switzerland (Reuters) -UBS CEO Sergio Ermotti said on Friday he did not plan to reduce the bank's size amid pressure from Swiss regulators to boost its resilience following its emergency takeover of Credit Suisse.
Ermotti told a business conference on Friday he was hopeful a "sensible solution" could be found on regulatory matters currently under discussion in Bern, but reducing the size of the bank was not the best approach for UBS.
"Shrinking the bank is not a strategy," Ermotti told the event.
UBS has been lobbying to soften proposed regulations set out in June that are designed to protect Switzerland should the lender, the country's sole remaining global bank, run into difficulties.
The Swiss government's measures envisage that UBS - which has a balance sheet about twice the size of the country's economy - should capitalise its foreign subsidiaries by 100% rather than 60% currently to cover potential losses abroad.
That could mean the bank has to carry an extra $24 billion in capital, which analysts have said would hamper its ability to reward investors.
Reuters reported in July that UBS had stepped up contingency planning, including considering moving its headquarters, although Ermotti later said the bank was focused on staying in Switzerland.
(Reporting by Dave Graham, Writing by John Revill, Editing by Jan Harvey)
Ermotti stated that shrinking the bank is not a strategy and he does not plan to reduce its size despite regulatory pressures.
The Swiss government's measures propose that UBS should capitalize its foreign subsidiaries by 100% instead of the current 60%, which could require an additional $24 billion in capital.
UBS has stepped up contingency planning, including considering moving its headquarters, but Ermotti later clarified that the bank is focused on staying in Switzerland.
UBS has a balance sheet approximately twice the size of Switzerland's economy.
Ermotti expressed hope that a 'sensible solution' could be found regarding the regulatory matters currently under discussion in Bern.
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