Switzerland’s financial regulator signaled that it would be open to introducing higher capital requirements for UBS Group AG in stages over a number of years, potentially pushing back the impact of changes the bank has fought stiffly against.
The Swiss financial regulator is open to phasing in higher capital requirements for UBS over several years, a change UBS has resisted. These requirements, potentially increasing by up to $25 billion, stem from reforms including 100% capital backing for foreign units. While UBS CEO Sergio Ermotti acknowledges a longer transition period doesn't change the substance of the demands, the regulator insists on full deduction of foreign units from capital to avoid pro-cyclicality. Legislation will be presented to Swiss lawmakers by May, with possible implementation by 2028, potentially muting the initial impact.
