UBS warns Swiss capital plan could force USD 37bn buffer and hit economy

UBS Group AG ( (CH:UBSG) ) just unveiled an announcement.

UBS has sharply criticized new Swiss regulatory capital measures, arguing they are extreme, misaligned with international standards and risk harming Switzerland’s economy and financial competitiveness. The rules tighten capital treatment of software and valuation uncertainties from 2027 and 2029, while leaving AT1 rules unchanged for now, and UBS says they would materially understate its capital strength versus global peers.

The bank estimates the Capital Adequacy Ordinance changes will remove about USD 4 billion of CET1 capital at group level and USD 2 billion at UBS AG, while a proposed full deduction of foreign participations would require around USD 20 billion in extra CET1 capital. Combined with previously communicated post–Credit Suisse requirements, UBS expects to need roughly USD 37 billion in additional CET1 capital, with an annual cost of about USD 3 billion, though it is keeping its 2026 profitability and capital return targets and will seek to mitigate impacts on shareholders, clients and employees.

UBS contends the government’s impact assessment is insufficient and points to an independent study suggesting the foreign participations rule alone could cut Swiss GDP by up to CHF 34 billion over ten years. The bank urges parliament to address stakeholder concerns during deliberations to avoid lasting damage to credit supply, investment, employment and tax revenues, while it continues to advocate for a strong, internationally competitive Swiss financial center and to contribute data and analysis to the policy debate.

More about UBS Group AG

UBS Group AG is a global financial services firm headquartered in Switzerland, operating as the largest truly global wealth manager and a leading bank in its home market. The group combines wealth management with a targeted, competitive investment bank and asset management capabilities, serving clients worldwide while maintaining a significant role in the Swiss financial center.

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