Published by Global Banking & Finance Review®
Posted on May 20, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleUBS is likely to encounter obstacles with Swiss capital legislation requiring $25 billion more in capital, potentially affecting its competitiveness.
(Reuters) -UBS Group is expected to face setbacks in its endeavor to dilute proposed Swiss legislation that would require maintaining up to $25 billion in additional capital, Bloomberg News reported on Monday, citing sources familiar with the matter.
The Swiss government is expected to publish a draft bill in June that could mandate the Swiss bank to strengthen its loss-absorption capacity, requiring it to cover losses up to 100% of the capital at its foreign units, the report added.
UBS declined to comment, while the Swiss government did not immediately respond to request for comment.
Since its 2023 emergency takeover of Credit Suisse, which left it as Switzerland's only globally systematically important bank, UBS has faced growing pressure.
The government and regulators are now considering tougher capital rules to safeguard the financial system and increase the bank's robustness.
UBS executives, however, say that excessive capital requirements could hamper its competitiveness and undermine the attractiveness of Switzerland's financial sector.
The draft legislation is not final, as the Swiss Federal Council may still suggest changes, the report noted.
Earlier on Monday, UBS CEO Sergio Ermotti warned that stricter regulation in the Swiss banking sector could ultimately benefit foreign competitors.
(Reporting by Bipasha Dey in Bengaluru; Editing by Mohammed Safi Shamsi)
UBS Group is expected to face setbacks in its endeavor to dilute proposed Swiss legislation requiring it to maintain up to $25 billion in additional capital.
The draft bill could mandate UBS to strengthen its loss-absorption capacity, requiring it to cover losses up to 100% of its capital.
Since its 2023 emergency takeover of Credit Suisse, UBS has become Switzerland's only globally systematically important bank and has faced increasing pressure.
UBS executives argue that excessive capital requirements could hinder its competitiveness and diminish the appeal of Switzerland's financial sector.
No, the draft legislation is not final, as the Swiss Federal Council may still suggest changes before it is enacted.
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