ZURICH (Reuters) -The Swiss government should tighten capital rules governing UBS, a majority of the Swiss public told a poll published on Friday, even if regulations are tougher than those imposed
Majority of Swiss Favor Stricter Capital Regulations for UBS
Public Support for Stricter Capital Rules
ZURICH (Reuters) -The Swiss government should tighten capital rules governing UBS, a majority of the Swiss public told a poll published on Friday, even if regulations are tougher than those imposed abroad.
Poll Results and Public Sentiment
Some 61% of those questioned backed extra capital requirements, according to the survey of 24,000 people conducted by the Leewas Institute for TA Media and newspaper 20 Minuten.
UBS's Response to Proposed Regulations
The figure corresponded to the proportion of people who thought Bern should go ahead, even if the rules are stricter than those used elsewhere.
Potential Compromises and Future Discussions
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.
Switzerland and UBS are signalling in private a willingness to compromise on the rules, potentially paving the way for parliament to settle on lower requirements acceptable to the government and the bank, Reuters reported this week.
The poll said supporters of left-leaning parties were most in favour of tighter rules, although among right-wing parties like the Liberals and Swiss People's Party there was also a majority in favour.
Still, two-thirds of respondents said it would be damaging for Switzerland if UBS moved elsewhere.
Representatives from the government and UBS have been invited to a parliamentary committee meeting in early November to discuss the next stage of regulations.
Draft legislation will only reach parliament - which will ultimately decide the outcome - next year.
(Reporting by John RevillEditing by Mark Potter)
