Published by Global Banking and Finance Review
Posted on December 19, 2025
ZURICH, Dec 19 (Reuters) - Zurich, the home canton of Switzerland's biggest banks, has called on the federal government to reconsider plans to tighten capital requirements for UBS, saying they risk undermining the competitiveness of its financial sector.
The government has proposed that UBS, Switzerland's sole remaining global bank since it bought Credit Suisse in 2023, should capitalise its foreign subsidiaries by 100% rather than 60% at present, to cover potential losses abroad.
That proposal forms the core of reforms that UBS says would mean finding an additional $24 billion in capital.
Canton Zurich's government said the measures would hurt the region's competitiveness.
"Some of the proposed measures are disproportionate and significantly stricter than the regulations in comparable competitor locations," said the canton in a document published as part of wide-ranging public consultation.
"The stricter requirements increase the capital costs of the banks affected and limit their international competitiveness."
The canton said the regulatory costs of the package could also hit the local economy via lower tax revenues and potential job losses, and called for a general overhaul of the measures.
UBS opposes the proposed capital rules, and industry groups, cantonal governments and influential lawmakers have joined in warning that banking could be rendered uncompetitive.
The conference of cantonal finance directors this month backed making banks more resilient but urged the government to exercise restraint in drafting the new laws.
(Reporting by John RevillEditing by Dave Graham)
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