ZURICH: The Swiss authorities’s proposed harder capital necessities for the banking business will affect UBS’s potential to develop, the nation’s finance minister stated in an interview printed on Saturday.
Switzerland’s largest financial institution should maintain extra capital if the regulatory bundle, introduced on Wednesday to stop a repeat of the collapse of Credit score Suisse, is applied, Karin Keller-Sutter informed Aargauer Zeitung.
“In brief, progress will change into costlier,” she stated.
The proposed modifications goal the nation’s 4 largest banks with 22 measures and greater than 200 pages of suggestions on police these deemed “too huge to fail” (TBTF).
The federal government goals to place the measures into impact shortly and current two packages for implementation within the first half of 2025.
Of the measures, Keller-Sutter highlighted the proposal to alter how Swiss guardian corporations of UBS and the nation’s different systemic banks should in future again their overseas holdings with as much as 100% fairness, up from 60% at current.
“If we regulate this regulation now, it’ll have penalties for the expansion and measurement of UBS,” she stated.
The requirement would additionally make it simpler to cope with authorities overseas within the occasion of a disaster, she added.
In accordance with an analyst estimate UBS may have to retain $10 billion to $15 billion in extra capital, in comparison with what it presently holds.
Within the interview, Keller-Sutter once more criticised UBS CEO Sergio Ermotti’s pay bundle, which final 12 months amounted to 14.4 million Swiss francs ($15.75 million).
“UBS is harming itself on this manner,” she stated.
Switzerland’s largest financial institution should maintain extra capital if the regulatory bundle, introduced on Wednesday to stop a repeat of the collapse of Credit score Suisse, is applied, Karin Keller-Sutter informed Aargauer Zeitung.
“In brief, progress will change into costlier,” she stated.
The proposed modifications goal the nation’s 4 largest banks with 22 measures and greater than 200 pages of suggestions on police these deemed “too huge to fail” (TBTF).
The federal government goals to place the measures into impact shortly and current two packages for implementation within the first half of 2025.
Of the measures, Keller-Sutter highlighted the proposal to alter how Swiss guardian corporations of UBS and the nation’s different systemic banks should in future again their overseas holdings with as much as 100% fairness, up from 60% at current.
“If we regulate this regulation now, it’ll have penalties for the expansion and measurement of UBS,” she stated.
The requirement would additionally make it simpler to cope with authorities overseas within the occasion of a disaster, she added.
In accordance with an analyst estimate UBS may have to retain $10 billion to $15 billion in extra capital, in comparison with what it presently holds.
Within the interview, Keller-Sutter once more criticised UBS CEO Sergio Ermotti’s pay bundle, which final 12 months amounted to 14.4 million Swiss francs ($15.75 million).
“UBS is harming itself on this manner,” she stated.
