Nearly two years after the Swiss government first proposed significantly increasing the capital requirements of UBS — igniting a heated dispute with the country’s largest bank — there are signs that the debate is finally moving in a more amicable direction. A cross-party group of Swiss politicians last week laid out a set of compromise proposals, which recommended considerably watering down the government’s original plans. In doing so, the lawmakers have presented a roadmap that has been cautiously welcomed by the bank and could break the deadlock between the two sides, according to analysts. Here is how their compromise could work: Foreign subsidiaries Switzerland’s seven-member Federal Council — the country’s executive branch — proposed in June to increase the bank’s capital requirements by up to $26 billion (CHF21 billion) in an attempt to mitigate the risk of another Credit Suisse-style collapse. UBS acquired its crosstown rival in a state-orchestrated rescue in March 2023. The ...
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How a Swiss compromise could save UBS billions
Published on December 18, 2025
Permanent link to this article: https://snbchf.com/2025/12/swiss-compromise-ubs-billions/
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