Swiss Parliament Proposes Stricter Capital Requirements for UBS Post-Credit Suisse…
- Reports
- 3
- Developments
- 7
- Repetition
- 33%
New informationRepeats or wire copies
What happened
Following the acquisition of Credit Suisse, the Swiss government initiated a banking overhaul in response to the integration of the two institutions. The Swiss parliament has proposed new regulations for UBS, including stricter rules on executive bonuses to promote long-term sustainable performance. The government also seeks to require UBS to hold about $20 billion in additional Common Equity Tier 1 capital to back its foreign subsidiaries.
From aol.com, businesstimes.com.sg
Why it matters
The Swiss National Bank has stated that the current regulatory framework revealed weaknesses, particularly regarding capital requirements. The proposed changes aim to address the increased concentration of the financial sector in Switzerland and implement 'too big to fail' measures.
From aol.com
Who's involved
- UBSSwiss multinational investment bank subject to the new capital and operational rules.
- Credit SuisseSwiss multinational banking institution whose collapse prompted the regulatory overhaul.
- SwitzerlandCountry whose financial stability and regulatory framework are being reviewed.
- Swiss National BankCentral bank of Switzerland backing the government's proposals for financial stability.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- UBSSpeculative
UBS could face increased operational costs due to higher capital requirements and potential executive compensation restructuring.
How it developed
Newest first. Tap a step to see who reported it.- The Swiss parliament has proposed stricter capital requirements for UBS.Sub-event
- The ongoing financial crisis involving UBS and Credit Suisse is leading to calls for banking reform, including exploring the phase-out of AT1 bonds.Sub-event
- The supreme court decided on a state liability suit concerning the merger of Credit Suisse into UBS, involving the Swiss Confederation.Sub-event
- Amid the Swiss banking overhaul, the Senate has proposed a capital compromise for UBS.Sub-event
Swiss government seeks stricter capital requirements on UBS, backed by the SNB.1 source
- Following the collapse, a banking overhaul was triggered, leading to new rules mandating executive accountability and bonus clawbacks.Sub-event
Swiss parliament proposes new banking regulations for UBS amid integration of Credit Suisse.1 source
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The entities involved
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UBS
Swiss multinational investment bank and financial services company
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Credit Suisse
Swiss multinational banking institution
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Switzerland
country in Central Europe