Swiss finance minister hits out at move to water down UBS capital plans
Karin Keller-Sutter criticises lawmakers for compromise proposal ‘in favour of the bank and against taxpayers’
The Swiss upper house committee has proposed a compromise allowing UBS to meet foreign subsidiary capital requirements through a 50/50 split of Common Equity Tier 1 (CET1) and Additional Tier 1 (AT1) instruments, rather than the government's 100% CET1 demand. Committee President Erich Ettlin emphasized this is a solution serving Switzerland, not a UBS victory.
UBS would maintain its current CET1 level with increased AT1 capital, triggering stricter measures if the ratio falls below 11%. The committee also mandates pay cuts for UBS unless it restores capital within a set period. Swiss authorities aim for an additional $20bn in CET1 capital to ensure financial stability, but UBS argues this would negatively impact competitiveness and the broader Swiss banking sector.
The draft measures passed 10-2 with one abstention and will now be reviewed by both upper and lower house committees, potentially facing more opposition before a final decision by year-end, though 2027 is more likely.
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- Swiss panel backs compromise on UBS foreign unit capital finance.yahoo.com
