Swiss Lawmakers Reject Delaying New Capital Rules for UBS

Swiss lawmakers voted against delaying new capital quality rules for banks, potentially raising UBS Group AG's capital requirements by $3 billion in 2024. The rules update how lenders quantify intangible items on their books, and Switzerland is revamping financial regulation after Credit Suisse's collapse. Finance Minister Karin Keller-Sutter argued that delaying the regulation overhaul would cause significant delay. The new capital quality rules are small compared to a provision requiring UBS to back capital in its foreign subsidiaries fully at the parent bank.

Swiss lawmakers have voted against delaying the introduction of new capital quality rules for banks, which could potentially raise UBS Group AG's capital requirements by $3 billion in 2024. The new rules aim to update how lenders quantify intangible items on their books, such as deferred tax assets and in-house software. Switzerland is revamping its financial regulations following the collapse of Credit Suisse in 2023 and its subsequent acquisition by UBS.

The vote, which took place in the lower house on Monday, saw 104 lawmakers voting against the delay and 86 voting in favor. Finance Minister Karin Keller-Sutter argued that delaying the regulation overhaul would cause significant delays in finalizing the reform. The new capital quality rules are expected to have a smaller impact on UBS compared to a provision that requires the bank to back the capital in its foreign subsidiaries fully at the parent bank [4].

The move comes as Switzerland is strengthening its financial regulatory framework to address concerns about the country's ability to bail out UBS in a future crisis. The new rules are part of a broader package of measures aimed at making the country safer from financial crises, with substantial new powers for the financial regulator Finma. Parliament is expected to debate and decide on the changes in 2027, with them taking effect in 2028 or 2029 [4].

UBS Group AG, a holding company with operations in wealth management, investment banking, retail and corporate banking, and asset management, has been making progress in integrating its recent acquisition of Credit Suisse. The company is on track to complete all Swiss booking center migrations by the end of the first quarter of 2026 and has already achieved significant cost savings since 2022 [2].

Despite the potential impact of the new capital requirements, UBS remains well-positioned for long-term performance. The company has seen steady growth in its net interest income (NII) and is pursuing strategic partnerships to drive sustainable global growth. Analysts remain optimistic about UBS's earnings growth prospects, with the Zacks Consensus Estimate for 2025 and 2026 earnings revised upward over the past month [2].

References:
[1] https://www.marketscreener.com/news/ubs-goes-long-30-year-france-government-bonds-ce7d59ded18df120
[2] https://www.nasdaq.com/articles/heres-what-makes-ubs-stock-solid-investment-option-now
[3] https://www.ainvest.com/news/ubs-maintains-macroeconomic-forecasts-canada-2509/
[4] https://www.bloomberg.com/news/articles/2025-09-08/swiss-lawmakers-vote-against-delaying-new-rules-on-ubs-capital