The Swiss Federal Council adopted on April 22 a sweeping revision of the Banking Act, imposing approximately $20 billion in new capital requirements on UBS. This reform aims to strengthen the too big to fail framework by requiring systemically important banks to guarantee their foreign subsidiaries with CET1 capital at the parent level. UBS, which absorbed Credit Suisse in a $3.25 billion acquisition in March 2023, will be directly affected by these new requirements. The Swiss Parliament is expected to review these amendments in summer 2026, with complementary reforms covering resolution planning, governance standards, and executive remuneration. The Swiss National Bank indicated that UBS remains well-capitalized and can absorb these new requirements without operational disruptions.
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