Published by Global Banking and Finance Review
Posted on October 3, 2025
2 min readLast updated: January 21, 2026
Published by Global Banking and Finance Review
Posted on October 3, 2025
2 min readLast updated: January 21, 2026
A majority of Swiss support stricter capital rules for UBS, despite the bank's concerns about global competitiveness. Discussions are ongoing for a potential compromise.
ZURICH (Reuters) -The Swiss government should tighten capital rules governing UBS, a majority of the Swiss public told a poll published on Friday, even if regulations are tougher than those imposed abroad.
Some 61% of those questioned backed extra capital requirements, according to the survey of 24,000 people conducted by the Leewas Institute for TA Media and newspaper 20 Minuten.
The figure corresponded to the proportion of people who thought Bern should go ahead, even if the rules are stricter than those used elsewhere.
UBS has strongly criticised the government's proposed rules - unveiled in June to make the country's banks safer following the 2023 collapse of Credit Suisse - because they would require it to hold $24 billion in additional capital.
The bank says that would put it at a disadvantage to global rivals, and is reviewing a series of mitigation strategies that even include relocating its headquarters abroad.
Switzerland and UBS are signalling in private a willingness to compromise on the rules, potentially paving the way for parliament to settle on lower requirements acceptable to the government and the bank, Reuters reported this week.
The poll said supporters of left-leaning parties were most in favour of tighter rules, although among right-wing parties like the Liberals and Swiss People's Party there was also a majority in favour.
Still, two-thirds of respondents said it would be damaging for Switzerland if UBS moved elsewhere.
Representatives from the government and UBS have been invited to a parliamentary committee meeting in early November to discuss the next stage of regulations.
Draft legislation will only reach parliament - which will ultimately decide the outcome - next year.
(Reporting by John RevillEditing by Mark Potter)
Capital requirements are regulations that determine the minimum amount of capital a bank must hold as a buffer against potential losses, ensuring financial stability and protecting depositors.
Financial stability refers to a condition where the financial system operates effectively, with institutions able to manage risks and absorb shocks, maintaining confidence among investors and consumers.
Banking regulations are laws and guidelines that govern the operations of banks and financial institutions, aimed at ensuring their safety, soundness, and compliance with financial standards.
An investment is the allocation of resources, usually money, into an asset or project with the expectation of generating a return or profit over time.
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