Finance
UBS 'strongly Disagrees' With Banking Rules Plan, Sees Hit From Ordinance
Published by Global Banking & Finance Review®
Posted on April 22, 2026
2 min readLast updated: April 22, 2026
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UBS strongly opposes new Swiss banking rules, warning they could erode about $4 billion in CET1 capital—reducing its ratio by ~0.8 percentage points—and have broader economic repercussions.
UBS Strongly Disagrees With Swiss Banking Overhaul, Anticipates $4B Capital Hit
UBS Strongly Disagrees With Swiss Banking Overhaul, Anticipates $4B Capital Hit
UBS Responds to Swiss Government’s Banking Regulation Plans
UBS Criticizes Proposed Overhaul
April 22 (Reuters) - UBS said it strongly disagrees with the Swiss government's plans to overhaul banking regulation announced on Wednesday, saying they would have far-reaching consequences for the Swiss economy.
Concerns Over International Alignment
"(The package) is extreme, lacks international alignment and disregards concerns expressed by the majority of respondents to the government's consultations," UBS said in a statement.
Key Elements of the Government’s Proposal
Changes to CET1 Capital Requirements
The government in its plans stepped back from requiring full backing of Common Equity Tier 1 (CET1) capital for the value of deferred tax assets and software.
Amortisation Period for Software
Instead, it opted for a maximum three-year amortisation period for software, in line with European Union regulations.
Implementation Timeline
Those provisions are regulated by so-called ordinances which the government said would come into force in January 2027.
Financial Impact on UBS
Expected Capital Reduction
The bank said the amendments announced, once fully implemented, are expected to eliminate about $4 billion of net CET1 capital at consolidated group level.
Effect on CET1 Capital Ratio
This would reduce the CET1 capital ratio at UBS Group by around 0.8 percentage points, it added.
Reporting Credits
(Reporting by Linda Pasquini and John RevillEditing by Madeline Chambers and Dave Graham)
Key Takeaways
- •UBS criticized the Swiss government’s proposed banking regulation package as “extreme,” unaligned internationally, and dismissive of consultation feedback. (investing.com)
- •The ordinance, set to take effect January 1, 2027, applies a three‑year amortization for software and higher deductions, eventually eliminating ~$4 billion of CET1 capital and lowering the group CET1 ratio by ~0.8 ppts. (investing.com)
- •UBS warns that, in addition to the CET1 hit, the package could inflict up to CHF 34 billion in cumulative GDP losses over ten years, signaling broader risks to the Swiss economy. (investing.com)
References
Frequently Asked Questions about UBS 'strongly disagrees' with banking rules plan, sees hit from ordinance
1What is UBS's response to the Swiss government's new banking regulations?
UBS strongly disagrees with the proposed regulations, claiming they are extreme and could significantly impact the Swiss economy.
2When will the new Swiss banking ordinances come into force?
The Swiss government stated the new ordinances would take effect in January 2027.
3How will the amendments affect UBS's CET1 capital?
UBS estimates that the amendments will eliminate about $4 billion of net CET1 capital at the group level, reducing its CET1 capital ratio by 0.8 percentage points.
4What changes did the Swiss government propose regarding software assets?
The government opted for a maximum three-year amortisation period for software, aligning with EU regulations.
5Did the Swiss government require full CET1 capital backing for deferred tax assets?
No, the government stepped back from requiring full CET1 capital backing for deferred tax assets.
