UBS Faces $16 Billion Capital Hike After Swiss Parliament Endorses Proposal

The Swiss National Bank has cautiously welcomed a proposal from lawmakers to increase capital requirements for UBS Group AG. The plan, which was endorsed by a large majority in the upper house of Switzerland's parliament on Wednesday, would require UBS to hold equity capital at its domestic unit worth 90% of its subsidiaries abroad. This would raise the lender's requirements by an estimated $16 billion in extra CET1 capital.

SNB board member Andréa Maechler said that the plan is a 'good amount' of new capital for UBS, but did not provide further details on how it would impact the bank's operations. The proposal aims to strengthen the lender's financial position and reduce its reliance on government support.