UBS Faces $16 Billion CET1 Hit as Swiss Lawmakers Advance Proposal

Swiss lawmakers have advanced a proposal that could add $16 billion to UBS's parent-bank common equity Tier 1 (CET1) requirement, according to the bank. The measure would require banks to back 90% of the carrying value of their foreign participations at the Swiss parent with CET1 capital.

The Federal Reserve also proposed reserve and capital rules for payment stablecoin issuers, requiring them to fully back outstanding tokens with eligible reserve assets and maintain separate capital.

Meanwhile, New Zealand's TSB is reviewing its capital and liquidity reporting after identifying issues in certain calculations and reporting. The review must establish whether the errors concern reporting alone or change the measures used to demonstrate compliance.