UBS Pushes Back Against Stricter Swiss Banking Rules Post-Credit Suisse Collapse

UBS rejected the Swiss government's proposal to strengthen banking rules following the Credit Suisse collapse, advocating for less costly alternatives. While some political parties support the stricter rules, UBS and business groups warn they could harm competitiveness. A compromise on the regulations is anticipated.

In response to the Swiss government's proposals for tougher banking regulations following the collapse of Credit Suisse, UBS has stated that such rules would make Switzerland uncompetitive. The bank called for more economical alternatives instead of the new rules meant to prevent future crises and protect taxpayers.

UBS, which rose to prominence as Switzerland's sole global bank after Credit Suisse's downfall in 2023, expressed concern over new capital requirements that could necessitate $24 billion of additional funds. These measures, UBS argues, are inconsistent with international standards and could disrupt its successful business model.

With the Swiss banking sector under scrutiny, consultations were launched with stakeholders until January. Meanwhile, UBS and business associations like Economiesuisse warn that higher capital costs might impact the industry, increase client expenses, and tighten credit supplies, advocating instead for reinforced existing regulatory practices.

(With inputs from agencies.)