Stefan Walter, CEO of the Swiss financial market supervisor FINMA, stated on Thursday that the Swiss government’s proposals to strengthen capital rules for UBS are proportionate. He added that regulation in Switzerland is no more severe than in other countries. FINMA has supported a government proposal for stricter banking rules that could require UBS to hold up to $26 billion in additional core capital, a measure strongly opposed by the bank. UBS Group AG provides financial services worldwide. Its Investment Bank provides advice, execution and access to capital markets for corporate, institutional and wealth management clients.
Walter emphasised that the new rules are specifically targeted and focused, designed to address issues that arose during the collapse of Credit Suisse, which UBS acquired in a state-engineered emergency takeover in 2023. Speaking to a banking audience in Zurich, Walter said, “What we are calling for is very, very specific and very focused.” He further noted that the decision ultimately hinges on a political question: how much risk should be borne by taxpayers versus the bank’s shareholders.
Walter also addressed concerns about over-regulation. He affirmed that the Swiss banking overhaul is proportionate and that regulation is no more severe than in other major financial centres. “It is simply not the case that Switzerland is over-regulated in comparison with other countries and markets,” he stated, suggesting that this assessment would hold true even if the United States were to pursue deregulation while Switzerland’s proposed overhaul is enacted.
