SNB Welcomes 90% CET1 Capital Backing for UBS's Foreign Units as Financial Stability Measure

The Swiss National Bank (SNB) has reacted positively to the new banking regulations passed by Switzerland's upper house of parliament. SNB Vice Chairman Antoine Martin stated that a 90% Common Equity Tier 1 backing for UBS's foreign units is 'a good amount' from a financial stability perspective.

Martin emphasized that more CET1 capital backing foreign participations would be beneficial, and while 100% would have been ideal, 90% is still considered satisfactory. He highlighted the importance of drawing lessons from the 2023 collapse of Credit Suisse and its subsequent takeover by UBS.

SNB Chairman Martin Schlegel echoed this sentiment, expressing full faith in the government and parliament to make decisions in the best interest of Switzerland. He noted that the proposed measures address regulatory weaknesses identified during the Credit Suisse crisis.