Swiss Parliament Upholds Timetable for Bank Reform, Rejects Delay Proposal

The Swiss Parliament has voted to stick to the original timeline for introducing new regulations for bank capital quality, which will increase the requirements for UBS by around $3 billion. The National Council voted 104-86 against delaying the introduction of the new rules, which will affect the valuation of intangible assets such as tax claims and software. The UBS stock fell by up to 2% before recovering, while the Swiss government is overhauling its financial market regulations following the collapse of Credit Suisse and its acquisition by UBS.

The Swiss Parliament has voted to maintain the existing timetable for the introduction of new rules on bank capital quality, which will increase UBS Group AG's capital requirements by approximately $3 billion. The National Council, the lower house of the Swiss Parliament, voted 104 to 86 against delaying the measure, which aims to update how lenders quantify intangible assets such as deferred tax assets, in-house software, and other hard-to-value items [1].

The decision comes as Switzerland is overhauling its financial regulations in the wake of the collapse of Credit Suisse in 2023 and its subsequent acquisition by UBS. The enlarged size of UBS has raised concerns about Switzerland's ability to bail out the bank in future crises, leading to government demands for up to $26 billion in additional capital [1].

Finance Minister Karin Keller-Sutter argued during the debate that delaying the measure would cause significant delays in finalizing the regulation overhaul. UBS, in a statement, acknowledged the decision but noted that the new capital quality rules' impact on the bank is relatively small compared to other measures [1].

The new rules are part of a broader package of banking stability measures that also includes substantial new powers for the financial regulator Finma. Parliament is expected to debate and decide on these changes in 2027, with them taking effect in 2028 or 2029 [1].

Following the vote, UBS shares fell by up to 2% in early trading before recovering, underperforming the Swiss Market Index [2]. The stock market reaction underscores the market's concern about the potential impact of the new capital requirements on UBS's financial health.

The Swiss government's focus on strengthening financial stability is a response to the systemic risks posed by the collapse of Credit Suisse and the subsequent integration of UBS. The new capital rules are designed to enhance the resilience of the banking sector and prevent future crises.

References:
[1] https://www.bloomberg.com/news/articles/2025-09-08/swiss-lawmakers-vote-against-delaying-new-rules-on-ubs-capital
[2] https://theedgemalaysia.com/node/769805