Finance
Swiss central bank backs tougher banking regulations for Switzerland
Published by Global Banking & Finance Review®
Posted on February 11, 2026
2 min readLast updated: February 11, 2026
Quick Summary
The Swiss National Bank supports tougher banking regulations to prevent crises like Credit Suisse's collapse, impacting UBS's capital requirements.
Swiss National Bank Supports Stricter Regulations for Banking Sector
Strengthening Banking Regulations in Switzerland
ZURICH, Feb 11 (Reuters) - The Swiss National Bank has reiterated its support for government proposals to make Switzerland's banking sector more secure after the meltdown of Credit Suisse, vice chairman Antoine Martin said on Wednesday.
Government Proposals Overview
The Swiss government in June proposed measures to prevent future banking crises following the 2023 collapse of Credit Suisse, which could make UBS hold up to $24 billion in extra capital.
UBS's Response to Proposed Measures
Martin, speaking at an event in Paris, said the SNB supported the measures which include a requirement for big banks to prepare sufficient collateral to access central bank liquidity if needed.
Future Outlook for Banking Regulations
Other proposals include that UBS can no longer count software and deferred tax assets towards its Common Equity Tier 1 capital, whiles its foreign units must be fully backed with CET1 capital.
The proposals have been rejected by UBS, which said they would make Switzerland less competitive.
The government is set to publish its final proposals soon, with UBS expecting more clarity in the next two to three months, the bank's CEO Sergio Ermotti said earlier this week.
(Reporting by John Revill, editing by Ariane Luthi)
Key Takeaways
- •Swiss National Bank supports stricter banking regulations.
- •Proposals aim to prevent future banking crises in Switzerland.
- •UBS may need to hold up to $24 billion in extra capital.
- •UBS opposes some measures, citing competitiveness concerns.
- •Final government proposals expected in the coming months.
Frequently Asked Questions about Swiss central bank backs tougher banking regulations for Switzerland
1What is the Swiss National Bank?
The Swiss National Bank (SNB) is the central bank of Switzerland, responsible for the country's monetary policy and financial stability.
2What are capital requirements?
Capital requirements are regulations that require banks to hold a certain amount of capital reserves to absorb potential losses and ensure stability.
3What is a banking crisis?
A banking crisis occurs when a significant number of banks face insolvency, leading to a loss of confidence in the banking system.
4What is Common Equity Tier 1 (CET1) capital?
CET1 capital is a measure of a bank's financial strength, consisting primarily of common shares and retained earnings.
