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Swiss government proposes tough new capital rules in major blow to UBS
- On June 6, 2025, the Swiss government announced that UBS must increase its core capital by up to $26 billion following its 2023 Credit Suisse takeover.
- This mandate arises from regulatory reforms after Credit Suisse's collapse, aiming to fully capitalize UBS's foreign subsidiaries and strengthen financial stability.
- UBS called the new rules extreme and said they could hurt shareholder returns, market competitiveness, and force a strategic rethink amid share price pressure.
- UBS shares jumped as much as 7% after the announcement, while analysts noted the longer 6-8 year phase-in and partial relief from reducing $8 billion in AT1 bonds.
- The regulations intend to reduce systemic risks and taxpayer bailouts, but could raise UBS’s costs and constrain growth, highlighting tensions between safety and competitiveness.
43 Articles
43 Articles
UBS weighs options after Swiss regulator calls for $27B capital raise
The NewsUBS is weighing its options after the Swiss government said it would need to raise $27 billion in fresh capital to support its US operations. The bank’s executive chair, Colm Kelleher, has called the ruling “extreme” and said it unfairly punishes the bank for stepping in — at Zurich’s request — to rescue Credit Suisse in 2023.The shotgun marriage left just one major bank in the country, and regulators are determined to safeguard it. In t…
The political process is only starting for the regulatory package. A broad-based compromise also carries risks.
UBS Faces $26 Billion Swiss Capital Demand: What’s at Stake for the Bank and Switzerland
The Swiss government announced on June 6, 2025, that UBS must boost its core capital by up to $26 billion. This move follows UBS’s 2023 takeover of Credit Suisse after its collapse. Swiss authorities say the new rules will protect the country’s economy and financial system. UBS, now with a balance sheet over $1 trillion, […]
UBS Slams ‘Extreme’ $26 Billion Capital Demand in Swiss Proposal
(Bloomberg) -- UBS Group AG said it would examine steps to mitigate the effects of the Swiss government’s proposal for as much as $26 billion in fresh capital requirements, calling the demand “extreme” and vowing to continue its push to dilute the regulations.
The government has learned lessons from the CS crisis. The most politically controversial decision concerns stricter capital requirements for UBS. But the last word is Parliament or even the people.
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