April 22 (Reuters) - UBS said it strongly disagrees with the Swiss government's plans to overhaul banking regulation announced on Wednesday, saying they would have far-reaching consequences for the
UBS Strongly Disagrees With Swiss Banking Overhaul, Anticipates $4B Capital Hit
UBS Responds to Swiss Government’s Banking Regulation Plans
UBS Criticizes Proposed Overhaul
April 22 (Reuters) - UBS said it strongly disagrees with the Swiss government's plans to overhaul banking regulation announced on Wednesday, saying they would have far-reaching consequences for the Swiss economy.
Concerns Over International Alignment
"(The package) is extreme, lacks international alignment and disregards concerns expressed by the majority of respondents to the government's consultations," UBS said in a statement.
Key Elements of the Government’s Proposal
Changes to CET1 Capital Requirements
The government in its plans stepped back from requiring full backing of Common Equity Tier 1 (CET1) capital for the value of deferred tax assets and software.
Amortisation Period for Software
Instead, it opted for a maximum three-year amortisation period for software, in line with European Union regulations.
Implementation Timeline
Those provisions are regulated by so-called ordinances which the government said would come into force in January 2027.
Financial Impact on UBS
Expected Capital Reduction
The bank said the amendments announced, once fully implemented, are expected to eliminate about $4 billion of net CET1 capital at consolidated group level.
Effect on CET1 Capital Ratio
This would reduce the CET1 capital ratio at UBS Group by around 0.8 percentage points, it added.
Reporting Credits
(Reporting by Linda Pasquini and John RevillEditing by Madeline Chambers and Dave Graham)
