SWITZERLAND and UBS are signalling in private a willingness to compromise on capital rules, potentially paving the way for parliament to settle on lower requirements acceptable to the government and the bank, according to people familiar with the situation.
UBS has strongly criticised the government’s proposed rules – unveiled in June to make the country’s banks safer following the 2023 collapse of Credit Suisse – because they would require it to hold $24 billion in additional capital. The bank says that would put it at a disadvantage to global rivals, and is reviewing a series of mitigation strategies that even include relocating its headquarters abroad.
One person familiar with the government’s thinking told Reuters that Bern could be willing to accept rules that would likely lower the additional capital burden to somewhere around $15 billion. That is an amount UBS could tolerate, said two other people familiar with the bank’s thinking.
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