ZURICH (Reuters) -UBS should have seven years to fully capitalise its foreign units, the Swiss government said on Friday, as it opened a formal consultation on the key proposal of a larger banking
Swiss Government Proposes Seven-Year Plan for UBS Capital Requirements
Overview of UBS Capital Requirements
ZURICH (Reuters) -UBS should have seven years to fully capitalise its foreign units, the Swiss government said on Friday, as it opened a formal consultation on the key proposal of a larger banking regulation overhaul.
Incremental Capital Increase
The capital requirement will be raised in increments over a seven-year period, the government said, in line with the range it set out in June when it presented a sweeping plan to strengthen financial stability after the collapse and acquisition of Credit Suisse by UBS in 2023.
Feedback Timeline and Stakeholders
"The Federal Council, the Swiss National Bank (SNB) and the Swiss Financial Market Supervisory Authority (FINMA) regard this measure as essential for achieving the too big to fail objectives for improved financial stability," the government said.
Concerns from UBS Executives
UBS executives have argued the additional capital burden of $24 billion will put the Zurich-based bank at a disadvantage to rivals and undermine Switzerland's competitiveness.
The bank, political parties and other interested groups now have until January 9 to provide feedback to the government, which must finalise the bill and submit it to parliament next year.
(Reporting by Ariane Luthi, Editing by Miranda Murray)
