UBS Prepares for Battle Over Proposed Capital Rules in Switzerland

UBS is gearing up for a legislative battle over proposed capital rules in Switzerland. The bank's finance minister, Karin Keller-Sutter, has stated that relocating to another country would be unlikely due to costs and legal complications.

The Swiss National Bank's vice chairman, Antoine Martin, considers the 90% CET1 capital ratio for foreign units a 'good outcome' but notes that 100% would have been preferable from a financial stability standpoint.

UBS estimates it needs around USD 16 billion in additional CET1 capital to comply with the new rules. This is part of a total estimated USD 33 billion required since absorbing Credit Suisse.