{
}
Swiss authorities are pushing for stricter capital requirements for UBS, which they argue is necessary to prevent future financial instability. The Basel Committee supports this move, stating that capital standards are similar globally, countering UBS's claims of competitive disadvantage. UBS currently holds 14.82% of its risk-weighted assets as capital, but may need to raise over $20 billion if double counting of foreign subsidiary capital is restricted.
UBS CEO Sergio Ermotti stated the bank lacks information on potential additional capital requirements amid Swiss government efforts to impose stricter regulations following the Credit Suisse collapse. The Basel Committee supports the government's stance, asserting that UBS's capital standards are not disadvantageous compared to global peers. However, UBS warns that further tightening could harm its competitiveness and the Swiss financial sector, as it already meets some of the world's strictest capital requirements.
The head of the Basel Committee on Banking Supervision defended Switzerland's capital rules, stating they do not unfairly disadvantage local banks like UBS compared to international rivals. UBS has estimated it may need an additional $40 billion in capital due to proposed regulatory changes following the Credit Suisse collapse. The Basel Committee emphasizes the quality of capital over quantity, suggesting that Swiss regulations allow for more flexibility in capital composition.
UBS may need an additional $40 billion in capital due to new Swiss regulations following the Credit Suisse collapse. Basel Committee's Neil Esho argues that Swiss banks aren't at a disadvantage, emphasizing capital quality over quantity, while UBS warns that stricter local rules could harm its competitiveness.
The head of global banking supervision defended Switzerland's capital regulations, stating they do not unfairly disadvantage local banks like UBS compared to international competitors. UBS has expressed concerns over proposed tighter rules, estimating a need for an additional $40 billion in capital, while the Basel Committee emphasizes the importance of capital quality over quantity. Esho highlighted that Swiss regulations allow for more flexibility in capital counting, which could mitigate perceived disadvantages.
The head of the Basel Committee has defended Switzerland's capital rules for banks, stating they do not unfairly disadvantage Swiss institutions like UBS compared to foreign competitors. UBS has expressed concerns over needing an additional $40 billion in capital due to proposed regulations, which the committee argues are flexible and allow for double counting of capital. Esho emphasized that the quality of capital is more important than quantity, countering UBS's claims that stricter rules would harm the Swiss financial sector.
UBS is facing pressure regarding its relationship with the Swiss Federal Council, prompting banking analyst Stefan Stalmann to suggest that relocating its headquarters should be elevated to "Plan B." While New York is seen as the most viable alternative, the move could incur significant costs and asset losses. Tensions over new capital requirements have intensified, complicating the bank's integration of Credit Suisse and raising concerns about regulatory pressures.
UBS is advised to consider relocating from Switzerland as a contingency plan due to potential regulatory challenges. Analyst Stefan Stalmann suggests moving the option from "Plan D" to "Plan B," with New York identified as the most favorable destination. UBS may face a need for up to $30 billion in additional equity capital, and a shift away from its Swiss base could risk losing a significant portion of its $2.1 trillion in assets under management.
A delay in new capital rules for UBS has created uncertainty about the bank's future while alleviating immediate regulatory burdens. Swiss authorities aim to involve parliament in determining capital requirements for UBS's foreign subsidiaries, potentially postponing decisions until 2028. This shift aligns with broader discussions on banking regulations, as UBS faces pressure to remain competitive amid loosening rules in other major financial centers.
A delay in implementing tougher capital rules for UBS has created uncertainty for the Swiss bank while postponing potentially burdensome charges. Swiss authorities aim to enhance banking sector robustness following Credit Suisse's collapse, but the slow progress on new regulations raises concerns about UBS's competitiveness and the overall stability of the financial market.
Stefan Stalmann
People
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
Basel Committee supports UBS amid stricter Swiss capital requirements debate
United States Dollar
Credit Suisse NASDAQ Gold FLOWS
Morgan Stanley
Deutsche Bank RV Global PP
CHE
Neil Esho
Sergio Ermotti
Colm Kelleher
Stefan Stalmann
Show more
08:58 02.05.2025
ubs faces stricter capital requirements amid competitive disadvantage concerns
Swiss Franc
AUS
CHE
GBR
DEU
USA
Neil Esho
Ariane Lüthi
Sergio Ermotti
Colm Kelleher
Stefan Stalmann
Oliver Hirt
Show more
08:58 02.05.2025
Swiss capital rules not unfair to UBS says Basel Committee head
United States Dollar
Credit Suisse High Yield Bond Fund, Inc.
CHE
Neil Esho
Colm Kelleher
Stefan Stalmann
Show more
06:05 02.05.2025
Swiss capital rules may impact UBS amid calls for regulatory balance
United States Dollar
Credit Suisse High Yield Bond Fund, Inc.
Deutsche Bank RV Global PP
Morgan Stanley
CHE
Neil Esho
Colm Kelleher
Stefan Stalmann
Show more
06:00 02.05.2025
Swiss capital regulations deemed fair for UBS amid tightening proposals
United States Dollar
Credit Suisse High Yield Bond Fund, Inc.
Deutsche Bank RV Global PP
Morgan Stanley
CHE
Neil Esho
Colm Kelleher
Stefan Stalmann
Show more
06:00 02.05.2025
Swiss capital rules deemed fair for UBS by banking watchdog chief
United States Dollar
Credit Suisse High Yield Bond Fund, Inc.
Deutsche Bank RV Global PP
Morgan Stanley
CHE
GBR
DEU
USA
Neil Esho
Colm Kelleher
Stefan Stalmann
Show more
06:00 02.05.2025
ubs considers relocation amid tensions with swiss government over capital requirements
08:01 31.03.2025
ubs considers relocation as regulatory pressures mount in switzerland
15:42 28.03.2025
delay in capital rules creates uncertainty for UBS amid regulatory shifts
United States Dollar
UBS Group AG
GBR
CHE
USA
Stefan Stalmann
Hannes Germann
Kirsten Donovan
Beat Flach
Andreas Venditti
Eva Herzog
Show more
14:25 27.02.2025
delay in capital rules creates uncertainty for ubS amid regulatory shifts
United States Dollar
CHE
Stefan Stalmann
Hannes Germann
Beat Flach
Andreas Venditti
Eva Herzog
Show more
14:25 27.02.2025
Trending
Subcategory
Corporate News
Industry Trends
Central Banks and Digital Currencies
Cryptocurrency Trends
Fintech Startups
Industry Mergers & Acquisitions
Startups & Entrepreneurship
AI Innovations
Emerging Startups
Funding Rounds & Investments
Countries:
Companies:
Tencent Music Entertainment Group
Sony Music Entertainment COMPANY
Alphabet Inc.
Microsoft Corporation Corp.
Oracle Corporation
Softbank Group Corp.
Currencies:
People: