Finance
Swiss government launches consultation on key UBS capital rule
Published by Global Banking & Finance Review®
Posted on September 26, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on September 26, 2025
2 min readLast updated: January 21, 2026
Swiss government proposes a seven-year plan for UBS capital requirements to enhance financial stability, with feedback due by January 9.
ZURICH (Reuters) -UBS should have seven years to fully capitalise its foreign units, the Swiss government said on Friday, as it opened a formal consultation on the key proposal of a larger banking regulation overhaul.
The capital requirement will be raised in increments over a seven-year period, the government said, in line with the range it set out in June when it presented a sweeping plan to strengthen financial stability after the collapse and acquisition of Credit Suisse by UBS in 2023.
"The Federal Council, the Swiss National Bank (SNB) and the Swiss Financial Market Supervisory Authority (FINMA) regard this measure as essential for achieving the too big to fail objectives for improved financial stability," the government said.
UBS executives have argued the additional capital burden of $24 billion will put the Zurich-based bank at a disadvantage to rivals and undermine Switzerland's competitiveness.
The bank, political parties and other interested groups now have until January 9 to provide feedback to the government, which must finalise the bill and submit it to parliament next year.
(Reporting by Ariane Luthi, Editing by Miranda Murray)
UBS should have seven years to fully capitalise its foreign units, according to the Swiss government.
The capital requirement will be raised in increments over a seven-year period, aligning with the government's earlier plan.
UBS executives argue that the additional capital burden of $24 billion will disadvantage the bank compared to its rivals and hurt Switzerland's competitiveness.
Political parties and other interested groups have until January 9 to provide feedback to the government.
The Federal Council, the Swiss National Bank (SNB), and the Swiss Financial Market Supervisory Authority (FINMA) consider this measure essential for achieving financial stability.
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