Business · Companies · 8 hrs ago
UBS weighs leaving Switzerland if capital rules tighten
UBS is considering a move abroad or a merger if Switzerland tightens bank capital rules.
The Swiss bank’s internal group is also reviewing possible purchases of smaller US banks and the possibility of being taken over.
There are no concrete talks about any of these options.
Switzerland’s government proposed stricter rules after Credit Suisse collapsed in 2023.
The government wants UBS to fully back its foreign subsidiaries with high-quality capital, a requirement that could cost the bank more than $20 billion.
UBS says the proposed rules are excessive and could hurt its ability to compete internationally.
Swiss lawmakers have already lowered the requirement to 90 percent, but UBS still considers that too high.
A committee in parliament’s lower house is due to consider the proposal later this month.
UBS is considering moving abroad or merging with another institution if Switzerland imposes stricter capital rules, according to people familiar with the matter.
An internal working group is examining scenarios, including a possible takeover of a smaller US bank or UBS itself being taken over.
The Swiss government wants UBS to fully back its foreign subsidiaries with core capital, a requirement the bank says would be excessive and harm its international competitiveness.
The debate follows the 2023 collapse of Credit Suisse.
- Who
- UBS, Switzerland’s largest bank.
- What
- It is examining a possible move abroad or merger if Swiss capital rules tighten.
- When
- The plans were reported on October 15, 2026; sources said the working group discussed scenarios on Thursday.
- Where
- Switzerland; a possible move would be abroad.
- Why
- Switzerland is considering stricter bank capital rules after Credit Suisse’s 2023 collapse.
UBS
Swiss government and lawmakers
Capital requirements
UBS
UBS considers the proposed rules excessive and harmful to its international competitiveness.
Swiss government and lawmakers
The government wants UBS to fully back its foreign subsidiaries with core capital.
Credit Suisse collapsed, prompting plans for stricter Swiss bank rules.
Switzerland’s Council of States lowered the proposed capital requirement to 90 percent.
Reuters reported that UBS was weighing scenarios including moving abroad or merging if Swiss rules tightened.
A committee of the National Council is due to consider the proposal.
- Potential move
- UBS is considering moving abroad if Swiss capital rules are too strict.
- Alternative scenario
- A merger with another institution.
- Possible US acquisition
- UBS’s working group is drawing up a list of smaller US banks for a possible takeover.
- Capital requirement
- The government wants UBS to fully back its foreign subsidiaries with CET1 capital.
- Potential cost
- The requirement could cost UBS more than $20 billion.