Swiss central bank backs tougher capital rules for UBS
Switzerland's central bank has intervened in a dispute over proposed capital rules that could require UBS to hold about €17.2 billion ($20 billion) of additional common equity to fully back foreign subsidiaries. Antoine Martin of the SNB argued that the Credit Suisse failure exposed weaknesses in capital and liquidity arrangements and that capital must be available where losses occur. UBS says the requirement is excessive and risks making Switzerland less attractive and constraining investment and lending. Parliament is still debating the package, and a compromise could allow some additional tier one securities instead of pure common equity.
UBS may need about €17.2 billion more common equity.
Context
Credit Suisse was rescued in 2023 and merged into UBS. Parliament must now decide new rules for UBS and may allow compromises. The decision could change how losses in foreign units are covered.
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