The planned 100 per cent capital backing requirement for UBS’s foreign subsidiaries is one of the key sticking points in the proposed reform of Switzerland’s banking regulation for large banks. According to a media report, parliamentarians are discussing a possible reduction to between 70 and 80 percent.
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Tuesday, 9 June 2026 09:13
According to a report by news agency Reuters on Tuesday, members of both the National Council and the Council of States are working on a compromise proposal regarding the planned changes to capital requirements for globally active systemically important banks. In Switzerland, this category currently includes only UBS.
According to sources familiar with the discussions, a proposal is being considered under which UBS would be required to back its foreign subsidiaries with common equity tier 1 (CET1) capital of only 70 to 80 percent. Such a move would reduce the bank’s regulatory burden by several billion dollar.
