Business · Companies · 2 hrs ago
UBS chief warns Swiss rules could threaten bank’s future in Switzerland
UBS chief Sergio Ermotti warned that stricter Swiss banking rules could affect the bank’s future in Switzerland.
The government wants UBS to hold billions of dollars in extra capital after the collapse of Credit Suisse more than three years ago.
The rules are intended to stop UBS’s foreign businesses from putting its Swiss operations at risk.
UBS argues that the proposed requirements would make it less competitive, while Ermotti said being Swiss is an advantage but not the main reason clients choose the bank.
He said UBS is assessing the long-term consequences of operating from Switzerland, but did not say the bank had decided to leave.
The Swiss Bank Employees Association has warned that a move of UBS’s headquarters could put as many as 12,000 jobs at risk.
Switzerland’s Senate is due to debate the legislation next month, as UBS continues to press for a compromise that protects stability without harming its competitiveness.
UBS chief executive Sergio Ermotti warned that Swiss banking rules could weaken the bank’s ability to compete from Switzerland.
The proposed rules would require UBS to hold billions of dollars in additional capital.
Ermotti said UBS was assessing the long-term consequences of the rules but did not announce a decision to leave.
The Swiss government says the reforms are intended to make UBS more resilient after the collapse of Credit Suisse.
The debate is moving to Switzerland’s Senate, which is due to discuss the legislation next month.
- Who
- UBS chief executive Sergio Ermotti and Swiss lawmakers.
- What
- Ermotti warned that proposed Swiss capital rules could harm UBS’s competitiveness and said the bank was assessing their long-term consequences.
- When
- Wednesday, October 28, 2026.
- Where
- Switzerland.
- Why
- The government is seeking to strengthen UBS against future crises, while the bank says the proposed capital requirements could impose excessive costs and weaken its competitiveness.
UBS
Swiss government
Purpose of the rules
UBS
UBS says the proposed requirements could harm its competitiveness and impose undue costs on shareholders, clients and employees.
Swiss government
The government is seeking to make UBS crisis-proof and ensure its foreign businesses cannot sink its domestic entity.
Capital requirements
UBS
Ermotti said he would have considered a proposal requiring foreign subsidiaries to be 50% backed by equity more balanced.
Swiss government
The government’s proposed rules include a substantial increase in capital requirements.
Credit Suisse collapsed, after which the Swiss government began seeking ways to make UBS crisis-proof.
A vote dimmed UBS’s hopes that the government’s plans for a $16 billion capital increase would be watered down.
Ermotti met with Swiss lawmakers.
Ermotti discussed the proposed regulations and UBS’s competitiveness during a call about quarterly results.
Switzerland’s Senate is due to discuss the legislation.
- Proposed capital increase
- $16 billion
- UBS chief executive
- Sergio Ermotti
- Potential jobs at risk if UBS relocates
- As many as 12,000
- Ermotti’s preferred capital backing for foreign subsidiaries
- 50% backed by equity
- Upcoming parliamentary debate
- Senate discussion expected next month
3 sources
What people are saying
We are assessing the long term consequences for our ability to compete out of Switzerland
a passport is not enough nowadays.
Our goal was and is to achieve a solution that balances financial stability, the protection of taxpayers and competitiveness.
For UBS, protecting the long-term interests of our shareholders, clients and employees worldwide remains the top priority.