Published by Global Banking & Finance Review®
Posted on February 5, 2026
2 min readLast updated: February 5, 2026
Add as preferred source on GoogleSwiss FINMA supports targeted UBS regulations to strengthen capital rules, aligning with global standards and addressing issues from Credit Suisse's collapse.
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.
"What we are calling for is very, very specific and very focused," Walter told a banking audience at an event in Zurich.
"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.
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)
Capital requirement refers to the minimum amount of capital a bank must hold as mandated by financial regulators to ensure stability and solvency.
Banking supervision involves the oversight of banks and financial institutions to ensure they operate safely and soundly, complying with laws and regulations.
Financial stability refers to a condition where the financial system operates effectively, with institutions able to withstand economic shocks without causing widespread disruptions.
Regulation in banking refers to the rules and guidelines established by authorities to govern the operations of banks and financial institutions.
A banking rule is a specific guideline or regulation that banks must follow to ensure compliance with legal and financial standards.
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