Personal Finance

Swiss government proposes tough new capital rules in major blow to UBS

A sign in German that reads “part of the UBS group” in Basel on May 5, 2025.

Fabrice Coffrini | AFP | Getty Images

The Swiss government on Friday proposed strict new capital rules that would require banking giant UBS

Johann Scholtz, senior equity analyst at Morningstar, noted that the news was “as bad as it will get for UBS.”

The banking giant “can now lobby for some concessions and take some actions themselves to mitigate impact, for instance upstream some excess capital from its subsidiaries,” Scholtz said. He added that while negotiations will start immediately, there will be a long-phase out for UBS to deploy the measures, with the earliest that it will apply in full being 2034.

JPMorgan analysts led by Kian Abouhossein also stressed that a long lead time of six to eight years for UBS to fulfil the deduction of investments in its foreign…

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