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Swiss regulator says UBS emergency plan still needs work
Published by Global Banking & Finance Review®
Posted on September 25, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on September 25, 2025
2 min readLast updated: January 21, 2026
Swiss regulator FINMA states UBS's emergency plan needs more work and legislative changes for effective crisis management.
ZURICH (Reuters) -A crisis plan for UBS still needs more work as authorities need more options for winding up or restructuring the bank in an emergency, which must be addressed by parliament, Switzerland's financial market regulator said on Thursday.
Switzerland is overhauling financial regulations after the 2023 collapse of Credit Suisse, which was taken over by bigger rival UBS. The government has proposed stricter measures for UBS to avoid a repeat of the Credit Suisse meltdown and to shield taxpayers from losses.
FINMA said further progress had been made to resolve a potential crisis at UBS and it continued to believe this could be achieved. But the regulator added there must be “greater optionality” for authorities, requiring legislative changes.
EMERGENCY PLAN WOULD BE FOR AN EXTREME SCENARIO
"UBS's emergency plan largely fulfils the current statutory requirements. However, it needs to be better integrated in the resolution plan in the future and thus cannot currently be regarded as executable," FINMA said.
UBS said it met the current requirements to be resolved under the preferred resolution strategy in the event of a crisis. As an additional safeguard, the bank said, the Swiss emergency plan would be available in an extreme scenario.
That plan is designed in line with legal requirements to ensure continuity and protection of systemically important functions in Switzerland, UBS said in a statement.
(Reporting by Dave Graham. Editing by Miranda Murray and Mark Potter)
The Swiss regulator stated that UBS's emergency plan still needs more work to ensure there are sufficient options for winding up or restructuring the bank in an emergency.
Switzerland is overhauling financial regulations following the 2023 collapse of Credit Suisse, which was taken over by UBS, to implement stricter measures for UBS to prevent a similar crisis.
FINMA believes that further progress has been made to resolve a potential crisis at UBS, but emphasizes the need for greater optionality for authorities in emergency situations.
UBS stated that it meets the current requirements for resolution under the preferred strategy in the event of a crisis, and it has designed its emergency plan to ensure continuity of systemically important functions.
The main concern is that while UBS's emergency plan largely fulfills current statutory requirements, it needs better integration into the resolution plan to be considered fully executable.
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