BASEL - Finance minister Karin Keller-Sutter said on Tuesday she was disappointed by a parliamentary committee decision to soften planned capital rules for UBS. The committee proposed that the bank back foreign subsidiaries with 50 percent Common Equity Tier 1 capital. The government had wanted 100 percent after the 2023 collapse of Credit Suisse.
Keller-Sutter told reporters the committee text does not improve the situation, quite the opposite. She said experts at the Swiss National Bank and FINMA view the proposal as impractical and legally uncertain. Some committee members were closer to the government's line, she added, underlining that the vote was not unanimous.
What happens in the chambers
The text still has to reach the Council of States floor and then the National Council, where the bank may face a tougher reception. UBS has argued that full CET1 backing of foreign units could force it to raise large amounts of expensive equity and hurt the Swiss economy. The SNB has said the bank already has enough capital to meet the government's demands, a claim the lender disputes in its details.
Keller-Sutter noted that a future public referendum on the rules is possible. For how European rates affect the rest of the financial system, see our later ECB decision report. A longer capital-rules thread begins in our 2025 coverage.