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Swiss finance minister underlines need for strong UBS capital rules - Finance news and analysis from Global Banking & Finance Review
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Swiss finance minister underlines need for strong UBS capital rules

Published by Global Banking & Finance Review

Posted on June 23, 2026

1 min read

· Last updated: June 23, 2026

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Swiss Finance Minister Emphasizes Strong UBS Capital Rules for Stability

Swiss Finance Minister Highlights Importance of UBS Capital Requirements

UBS Subsidiaries and Core Capital Backing

ZURICH, June 23 (Reuters) - Requiring UBS to fully back its foreign subsidiaries with core capital is necessary to preserve financial stability, Swiss Finance Minister Karin Keller-Sutter said on Tuesday.

Focus on U.S. Subsidiaries

"We really would like them to have capital requirements that finance fully especially the subsidiaries in the United States," she said about UBS, which became Switzerland's sole global bank when it acquired fallen rival Credit Suisse in 2023.

Switzerland's Financial Centre and Stability

Long-Term Stability and Capitalisation

Switzerland's financial centre has to be a stable location in the long run, and being well-capitalised can be an advantage for banks, Keller-Sutter added at a banking event in Zurich.

Switzerland's Reputation

"Maybe it's not Indiana Jones," she said of Switzerland. "But I think it is reliable and stable."

(Reporting by Ariane LuthiEditing by Dave Graham)

Key Takeaways

  • UBS’s acquisition of Credit Suisse in 2023 created a single global bank, prompting calls for tighter capital rules to shield Swiss taxpayers and reinforce resilience. (globalbankingandfinance.com)
  • The proposed regulation could require UBS to hold an estimated USD 23–26 billion in additional CET1 capital at its Swiss parent, phased in starting 2026–2027. (swissinfo.ch)
  • UBS argues the requirements would erode its global competitiveness and flexibility, potentially curtailing dividends, buybacks or prompting strategic shifts—including possible relocation, though executives affirm commitment to Switzerland. (spglobal.com)

References

Frequently Asked Questions

Why is UBS required to fully back its foreign subsidiaries with core capital?
Swiss Finance Minister Karin Keller-Sutter stated that UBS must fully back its foreign subsidiaries with core capital to preserve financial stability.
How did UBS become Switzerland's sole global bank?
UBS became Switzerland's sole global bank after acquiring rival Credit Suisse in 2023.
What advantage does being well-capitalised give Swiss banks?
Being well-capitalised can be an advantage for Swiss banks by ensuring stability and maintaining Switzerland as a reliable financial centre.
What did the finance minister say about Switzerland's financial centre?
She remarked that Switzerland is reliable and stable, stressing the importance of a well-capitalised financial centre in the long run.

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