UBS Offers To Limit Size Of Investment Bank To Appease Swiss Regulators

(MENAFN- Swissinfo) UBS has proposed capping the size of its investment bank as it seeks a compromise with Swiss regulators who are considering increasing the bank's capital requirements after its takeover of Credit Suisse. This content was published on March 26, 2025 - 15:50 3 minutes Simon Foy in London and Mercedes Ruehl in Zurich, Financial Times

The lender has suggested to lawmakers that it could permanently limit the size of the division to reduce risk, according to a person familiar with the matter. The investment bank already has a self-imposed limit of 25% of UBS's risk-weighted assets.

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The proposal comes as UBS seeks to alleviate the concerns of regulators and politicians that the size of the combined group poses a threat to Switzerland's economy. Officials are pushing for UBS to fully back its foreign subsidiaries, a move that would sharply increase its capital requirements, to protect against a potential future rescue.

However, executives at the bank have argued that the proposed capital reforms would damage its international competitiveness and have created tensions between the lender and the Swiss establishment.

Sergio Ermotti, UBS's chief executive, said last week that he“never expected the greatest obstacle to delivering a successful outcome would come from the same authorities who asked us to take on the Credit Suisse challenge”.

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