Basel Committee head defends Swiss banking rules, UBS may need to hold more capital

From Yahoo Finance: 2025-05-02 00:05:00

Switzerland’s banking rules do not unfairly penalize its lenders, says Basel Committee head, refuting UBS opposition to tougher capital requirements post Credit Suisse collapse. UBS estimates needing $40 billion more capital, but Swiss rules allow flexibility in what counts as capital. Esho prefers quality over quantity, emphasizing capital resilience. UBS argues against additional Swiss regulations, fearing harm to the bank and economy. Basel III implementation concerns arise as EU, UK, and US delay, but Esho expects all major financial centers to adopt eventually. UBS may need to hold more capital, with analysts projecting a 16.27% ratio by 2030. Extreme regulations could push UBS’s Tier 1 ratio to 22.4%. Swiss rules allow for more Additional Tier 1 bonds, supporting government’s plan for UBS to hold more capital domestically. Basel Committee ensures consolidated group capital, but UBS faces challenges due to U.S. subsidiary size.



Read more at Yahoo Finance: Basel boss signals ‘Swiss finish’ to capital rules is not unfair on UBS