Switzerland’s Council of States approved stricter capital requirements for UBS. This legislative reform follows the 2023 collapse of Credit Suisse. The measure requires UBS to back its foreign units with 90% top-tier Common Equity Tier 1 (CET1) capital.
The vote rejected a 100% backing proposal from the government. Lawmakers also dismissed a compromise allowing for cheaper forms of capital. UBS estimates it will need approximately $16 billion in additional CET1 capital to meet the new threshold.
UBS criticized the decision, claiming it fails to address the root causes of the Credit Suisse crisis. The legislation now moves to the lower house of parliament for further debate.