Key facts
- UBS faces new capital rules debated by Swiss lawmakers.
- Proposals for foreign unit CET1 capital range from 75% to 100%.
- A referendum is possible if rules are perceived as too lax or too strict.
- UBS has suggested contingency plans including relocating its headquarters.
Swiss lawmakers are grappling with new capital rules for UBS following the 2023 collapse of Credit Suisse. The debate centers on how much Common Equity Tier 1 (CET1) capital UBS's foreign units must hold, with proposals ranging from 75% to 100%. The upper house of parliament has favored a 90% requirement, which UBS argues is excessive and damages its competitiveness. The government had proposed 100%, while some lawmakers are exploring lower figures. The situation is complicated by the threat of a public referendum if the rules are deemed too strict or too lenient, potentially leading to prolonged uncertainty or the bank considering relocation.