Swiss Parliament Rejects Compromise on UBS Capital Requirements
What happened
The Council of States rejected a proposed 50:50 Common Equity Tier 1/AT1 compromise regarding banking capital requirements for UBS. This decision, made on September 23, requires UBS to hold approximately US$16bn of additional CET1 capital. The bill must still pass the National Council, which is not scheduled to review it before December.
From ifre.com
Why it matters
The ongoing debate over Additional Tier 1 bonds is central to post-financial crisis banking reform in Switzerland. Policymakers are grappling with how to regulate UBS, the country's largest bank, following the collapse of Credit Suisse in March 2023.
Following the acquisition of Credit Suisse, the Swiss parliament proposed new banking regulations for UBS.
From ifre.com
Who's involved
- UBSSwiss multinational investment bank subject to new capital requirements.
- Credit SuisseSwiss multinational banking institution whose collapse triggered the current regulatory debate.
- SwitzerlandCountry where the banking crisis and regulatory debates are occurring.
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 costs related to holding additional CET1 capital.
Keep exploring
Part of
Following the acquisition of Credit Suisse, the Swiss parliament proposed new banking regulations for UBS.Also in this story
- Amid the Swiss banking overhaul, the Senate has proposed a capital compromise for UBS.
- Following the collapse, a banking overhaul was triggered, leading to new rules mandating executive accountability and bonus clawbacks.
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