UBS has rejected government proposals to strengthen banking rules in the wake of the collapse of Credit Suisse, saying yesterday they would make Switzerland uncompetitive and calling instead for less costly alternatives.
Banking and business lobby groups echoed the view, while the right-wing Swiss People’s Party said it favoured a compromise to ensure UBS was competitive internationally and the centre-left Social Democrats and Green Party backed the proposals.
UBS became Switzerland’s sole global bank after its former rival Credit Suisse imploded in 2023. The Swiss government then pledged to design new rules that aimed to prevent a repeat of the crisis and ensure taxpayers would not be on the hook.
Europe’s largest wealth manager said the package of tougher capital requirements – at the heart of which are proposals to make it fully capitalise its foreign subsidiaries – could make it hold $24 billion in additional capital.
“The proposal would lead to huge added costs and endanger the continuation of the successful business model,” UBS said, arguing the measures put forward for foreign units were disproportionate and out of step with international competitors.
The government launched consultations on the proposals in September and gave stakeholders until early January to respond.
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