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Swiss National Bank says 90% CET1 backing for UBS a good outcome - Finance news and analysis from Global Banking & Finance Review
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Swiss National Bank says 90% CET1 backing for UBS a good outcome

Published by Global Banking & Finance Review

Posted on September 24, 2026

1 min read

· Last updated: September 24, 2026

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Swiss National Bank Favors 90% CET1 Backing for UBS’s Foreign Units

SNB's Position on CET1 Capital Requirements

Vice Chairman's Statement

BERN, Sept 24 (Reuters) - A 90% Common Equity Tier 1 backing for UBS's foreign units is a good amount, SNB Vice Chairman Antoine Martin said on Thursday, a day after Switzerland's upper house of parliament voted on new banking regulations.

Financial Stability Perspective

Benefits of Increased CET1 Backing

More backing of foreign participations with CET1 capital is better from a financial stability perspective, Martin added, reiterating the central bank's previous position.

Preference for Full Backing

Full backing with 100% CET1 capital would have been even better, Martin said.

Reporting and Editing

(Reporting by Ariane Luthi, editing by John Revill)

Key Takeaways

  • SNB endorses 90% CET1 backing as a financially sound result, though advocates 100% coverage for maximum stability
  • This follows parliament’s upper‑house vote endorsing tougher capital rules for UBS’s foreign subsidiaries, advancing from the current 60% level with part AT1 use (archive.ph)
  • UBS previously warned that full CET1 backing could impose significant costs (~USD 16 bn additional capital) and affect competitiveness, while SNB stresses the measure is key to addressing regulatory gaps exposed by the Credit Suisse crisis (archive.ph)

References

Frequently Asked Questions

What did the Swiss National Bank say about CET1 backing for UBS?
The SNB said that 90% Common Equity Tier 1 backing for UBS’s foreign units is a good amount.
Why is higher CET1 capital backing important?
More CET1 capital backing for foreign participations improves financial stability.
How does the SNB view 100% CET1 backing?
The SNB vice chairman stated that full backing with 100% CET1 capital would have been even better.
What event prompted these statements from the SNB?
The comments followed a Switzerland upper house parliamentary vote on new banking regulations.

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