Swiss Parliament Proposes Stricter Capital Requirements for UBS
- Reports
- 2
- Developments
- 2
- Repetition
- 0%
New informationRepeats or wire copies
What happened
The Swiss parliament endorsed a plan requiring UBS, Switzerland's largest lender, to hold more equity capital to back its foreign subsidiaries. UBS estimates this measure would require the bank to hold an additional US$16 billion in Common Equity Tier-1 capital. UBS has argued that the capital reform would render it uncompetitive against global peers and pledged to continue fighting the measure. Swiss Finance Minister Karin Keller-Sutter stated that moving UBS out of Switzerland would be legally complex and more expensive than remaining in the country.
From businesstimes.com.sg
Why it matters
The proposal is part of new banking regulations put forward following the acquisition of Credit Suisse. The requirement for increased equity capital directly impacts UBS's financial structure and operational costs. UBS has revived discussions about moving the bank out from under Swiss regulators, potentially through a combination with a foreign bank.
Following the acquisition of Credit Suisse, the Swiss parliament proposed new banking regulations for UBS.
From businesstimes.com.sg
Who's involved
- UBSSwiss multinational investment bank subject to the proposed capital requirements.
- SwitzerlandThe country where the parliament proposed the new banking regulations.
- Credit SuisseSwiss multinational banking institution acquired by UBS.
- Sergio ErmottiChief Executive Officer of UBS.
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 might face higher operational costs due to the required increase in equity capital.
- Credit SuisseSpeculative
The integration of Credit Suisse's operations into UBS might be affected by the new capital rules.
How it developed
Newest first. Tap a step to see who reported it.Dispute over capital demands arises regarding stricter requirements for UBS.1 source
Swiss parliament proposed stricter capital requirements for UBS amid banking overhaul.1 source
Keep exploring
Part of
Following the acquisition of Credit Suisse, the Swiss parliament proposed new banking regulations for UBS.Also in this story
- The supreme court decided on a state liability suit concerning the merger of Credit Suisse into UBS, involving the Swiss Confederation.
- 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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Switzerland
country in Central Europe