In Zurich on January 30, UBS CEO Sergio Ermotti expressed concerns that imposing elevated capital requirements on UBS as a systemically important bank would result in increased costs for businesses and households. He emphasized this at an event in Zurich, urging authorities to maintain the current capital requirements while preparing to revise Swiss banking regulations.
The Swiss government is committed to strengthening banking rules to fortify the sector and prevent crises like the one experienced by Credit Suisse in 2023, leading to its acquisition by UBS. Ermotti highlighted that UBS's ability to assist Credit Suisse under current regulations demonstrates the adequacy of capital strength and clear communication.
Emphasizing that UBS already complies with stringent Basel III financial stability standards, Ermotti informed a group of banking professionals of the bank's adherence to some of the toughest global capital requirements. He stressed that Switzerland's goal to uphold its status as a prominent financial hub is at odds with imposing higher capital requirements on a bank's foreign subsidiaries. Ermotti called for a thorough cost-benefit analysis and requested involvement in regulatory dialogues.
In response to a recent report from the University of Bern suggesting that UBS benefits significantly from a state guarantee at a cost-saving advantage, Ermotti refuted the findings, citing outdated data as the basis for the report.