Swiss Central Bank Backs 90% CET1 Requirement for UBS Foreign Units
The Swiss National Bank has expressed support for a 90% Common Equity Tier 1 (CET1) capital backing requirement for UBS's foreign units following a recent parliamentary vote. According to Vice Chairman Antoine Martin, this level of backing is a good outcome, but he emphasizes that even higher levels would provide greater financial stability.
Martin stressed that full backing with 100% CET1 capital would have been even better from a financial stability perspective. This highlights the central bank's ongoing concerns about the resilience of large cross-border banks in Switzerland.
The Swiss banking sector has faced intense scrutiny, with policymakers debating stricter rules for UBS and other major players. Martin's comments underscore the central bank's preference for stronger capital buffers to mitigate potential risks.