Proposed UBS regulation targeted and focused, says Swiss banking supervisor

Overview of UBS Regulation

ZURICH, Feb 5 (Reuters) - Swiss government proposals to strengthen capital rules for UBS are proportionate, Stefan Walter, CEO of Swiss financial market supervisor FINMA, said on Thursday, with regulation in Switzerland no more severe than in other countries.

FINMA has already backed a government proposal for stricter banking rules that could make UBS hold up to $26 billion in additional core capital, a move which is strongly opposed by Switzerland's biggest bank.

But Walter said the new rules were targeted and focused and would help tackle problems that became clear during the collapse of Credit Suisse, which was bought by UBS in a state-engineered emergency takeover in 2023.

Specifics of the Proposed Rules

"What we are calling for is very, very specific and very focused," Walter told a banking audience at an event in Zurich.

Political Implications of Regulation

"Ultimately, it is a political question of how much risk should be borne by taxpayers and how much by the bank's shareholders," he added.

Comparison with Global Standards

The Swiss banking overhaul as a whole was proportionate and regulation was no more severe than in other financial centres, Walter added.

"It is simply not the case that Switzerland is over-regulated in comparison with other countries and markets," he said.

This still applied even if the United States were to deregulate and Switzerland's overhaul to pass as proposed, he added.

(Reporting by Ariane Luthi, editing by John Revill)