Swiss finance minister hits out at move to water down UBS capital plans

The change aligns with a broader parliamentary push to ease post‑crisis capital rules affecting large banks. Subsequent reports said lawmakers moved the compromise to the upper house, where a majority signalled approval for the 50 percent CET1 backing. The Financial Times framed the step as a victory for softer banking regulation, while TradingView’s weekly recap confirmed the upper chamber’s green light alongside UBS’s Q3 earnings release. PrivateBankerInternational echoed the parliament’s support for the foreign‑unit capital plan, indicating broader legislative backing. Analysts noted the shift could improve UBS’s lending capacity but may raise concerns among international supervisors. The finance minister publicly criticised the parliamentary move, arguing it water‑downs UBS’s capital plan.

Bloomberg and the Financial Times quoted his disappointment, describing the concession as a softening of regulatory standards that could undermine market confidence. The minister’s comments contrasted with the legislative narrative, highlighting tension between the executive branch and the parliament over the appropriate level of bank resilience. The Swiss National Bank, meanwhile, defended the existing capital framework. SNB Governor Thomas Martin told Yahoo Finance that a robust capital level is not a disadvantage for banks, and Crypto Briefing reported the central bank’s insistence that UBS fully back its foreign units with top‑tier capital. TradingView noted that, even with the concession, UBS would still need roughly $13 billion in additional capital to meet the revised standard. The SNB’s stance underscores its priority on maintaining confidence in the Swiss banking system despite political pressure.

The compromise now sits pending final approval from the upper chamber, with market reaction already visible; Investing.com flagged a slide in UBS shares following the legislative updates. Reuters and Bloomberg continue to track the debate, noting that the ultimate impact on UBS’s balance sheet and Swiss banking oversight will depend on the upper house’s final vote. Observers will watch the upper house vote scheduled for later this month. The story illustrates an ongoing clash between regulatory easing and prudential safeguards.