The Swiss government plans to increase UBS Group Inc.’s capital requirements by about $20 billion, intensifying tensions over proposed banking reforms. Finance Minister Karin Keller-Sutter is pushing a bill that mandates UBS to allocate 100% of its capital to support its overseas units, a response to vulnerabilities highlighted by Credit Suisse’s collapse.
UBS strongly opposes the proposal, claiming it is extreme and disregards feedback from stakeholders. Although the government has softened some regulatory changes, it remains committed to strengthening UBS’s capital base. These measures aim to enhance stability within the banking sector.
The proposed reforms may limit UBS’s growth and ability to distribute dividends, despite maintaining strong profitability. A parliamentary process is set to discuss the measures further, with final decisions expected next year. UBS plans to continue lobbying for changes that protect shareholder interests.
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