UBS Warns Swiss Capital Proposal for Foreign Units Would Add USD 23 Billion CET1 Burden

The latest announcement is out from UBS Group AG ( (CH:UBSG) ).

On 12 January 2026, UBS published its formal response to the Swiss Federal Council’s consultation on amendments to the Banking Act and Capital Adequacy Ordinance, centering on new capital requirements for foreign subsidiaries of systemically important banks. In a statement dated 9 January 2026, the bank said it supports the overarching goal of learning from the Credit Suisse crisis and strengthening financial stability with targeted, proportionate and internationally aligned measures, but strongly rejects the proposed full deduction of foreign subsidiaries from Common Equity Tier 1 capital. UBS argues that the measure, based on what it calls an extreme assumption that the parent bank should be able to absorb the total loss of all foreign subsidiaries without affecting its CET1, would raise its capital requirements by roughly USD 23 billion, implying at least 50% higher capital levels than key European and US peers and substantially higher costs. The group warns that, coming on top of what is already one of the world’s strictest capital regimes and an early, conservative implementation of Basel III, the proposal would further weaken Switzerland’s competitive position, harm the Swiss financial center, and negatively affect clients, shareholders and the bank’s strategic flexibility, while not being properly calibrated to the actual causes of the Credit Suisse failure, which UBS links to strategy, profitability, risk management, culture and governance rather than a lack of capital under existing rules.

The most recent analyst rating on (CH:UBSG) stock is a Buy with a CHF43.00 price target. To see the full list of analyst forecasts on UBS Group AG stock, see the CH:UBSG Stock Forecast page.

More about UBS Group AG

UBS Group AG is a global financial services group headquartered in Zurich, operating primarily as a universal bank with strengths in wealth management, investment banking, asset management and retail and corporate banking. As Switzerland’s largest systemically important bank, it plays a central role in the Swiss financial center while competing with major European and US banks for international capital markets and wealth management business.

YTD Price Performance: 3.22%

Average Trading Volume: 5,828,035

Technical Sentiment Signal: Buy

Current Market Cap: CHF119.2B

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