ZURICH, March 17 (Reuters) - UBS stated on Monday that the persistent "ill-informed" public discourse surrounding potential risks arising from its business activities and size has led to uncertainties heading into 2025, as Switzerland grapples with regulating the nation's largest bank.
Since its expansion through the acquisition of Credit Suisse in 2023 following its competitor's collapse due to financial problems, UBS faces stricter banking regulations.
The core of the regulatory discussion revolves around determining the additional capital UBS should maintain, a lingering question for the bank.
In its most recent annual report, UBS highlighted that it already adheres to and meets capital requirements that rank among the most stringent for any globally significant bank.
UBS mentioned, "The ongoing ill-informed public discussions in Switzerland regarding potential risks linked to our business operations or our size compared to the Swiss economy, along with heightened requests for future capital standards, have generated uncertainties as we approach 2025."
The bank emphasized that its business structure and asset quality position UBS as a significantly more stable entity than Credit Suisse ever was.
UBS reiterated its anticipation of specifics on capital requirements from the Swiss government, anticipated in May.
"Given the wide range of potential outcomes, the impact of the proposals on UBS can only be evaluated once the implementation details are clearer," UBS stated.
Moreover, UBS expressed its support for proposals to empower Switzerland's financial market authority to impose fines on individual executives and establish a permanent public liquidity buffer as a safeguard for systemically critical banks.