ZURICH (Reuters) – The Swiss authorities’s proposed harder capital necessities for the banking business will affect UBS’s skill 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 turn into costlier,” she stated.
The proposed adjustments goal the nation’s 4 largest banks with 22 measures and greater than 200 pages of suggestions on easy methods to police these deemed “too huge to fail” (TBTF).
The federal government goals to place the measures into impact rapidly and current two packages for implementation within the first half of 2025.
Of the measures, Keller-Sutter highlighted the proposal to alter how Swiss mum or dad firms of UBS and the nation’s different systemic banks should in future again their international holdings with as much as 100% fairness, up from 60% at current.
“If we modify this regulation now, it is going to have penalties for the expansion and dimension 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 keeping with an analyst estimate UBS would possibly must retain $10 billion to $15 billion in extra capital, in comparison with what it at the moment holds.
Within the interview, Keller-Sutter once more criticised UBS CEO Sergio Ermotti’s pay bundle, which final yr amounted to 14.4 million Swiss francs ($15.75 million).
“UBS is harming itself on this manner,” she stated.
($1 = 0.9140 Swiss francs)