Switzerland forces UBS to add $ 26 billion in capital

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The Swiss government has offered to reduce the risk of water-rising cases, which is a more growing capital requirements of the UBS capital, which is previously reduced to the risk of “extreme” and “extreme”.

Swiss Federal Finance Department (FDF) said he wanted to force Friday Ubl Despite the public lobbying campaign to dilute the change of management of the bank, in addition to the country’s financial sector as part of widespread reforms.

“The Credit Suisse crisis has announced that the capital base of the Swiss parent bank is not enough,” FDF said.

“The implementation of the event package is aimed at a significant reduce the possibility that an important bank in Switzerland will enter a crisis and urgent measures should be required.”

The UBS – captured the opponent right now Credit Suisse In 2023, 60 percent of the capital’s capital – 60 percent of the capital are required to adapt to the capital capital in the main bank.

FDF needs to increase one’s capital to about $ 26 billion in the total capital of UVs to meet with a new 100 percent request.

At the same time, AT1 bond holdings in the capital of $ 18 billion will be allowed to reduce $ 8 billion.

FDF, this is an assessment based on 2024 information and has no change in the potential use of UBS’s balance sheet, risk-drawn assets or reduction measures.

The parliamentary “Very Failure Variety” proposals, Credit Suisse, the foreign financial regulator in 2017 was given capital relief, which allowed the bank’s foreign subsidiaries. Last year, a parliamentary report called the “incomprehensible” action.

New capital offers will be prepared before submitting to the Parliament in the fall. FDF, at the beginning of 2028, at the beginning of the “earliest”, “to eight to eightever years”, “until eight to eightever and eight to eight years” will be given a transition period to at least six to six years, he said.

UBS, along with Swiss government and regulators, because in April, this will be an opportunity to reduce changes in April.

“Real lobbying begins now and prepares for talks that will last for years,” he said, “he said. “Parliament is known to be satisfied in the past.”

The ambiguity of the bank, which covers the planned changes, claims that the bank’s share price would damage the competitiveness of additional capital requirements at the international level.

“Growth in abroad is still possible (for UBS),” FDF said. “However, the purchase of the value of foreign branches in the future or the purchase of subsequent foreign affiliates should be fully covered and can no longer be financed by the parent bank’s price.”

Shares in UBS jumped up to 6 percent after the offers on Friday.

Along with capital reforms, FDF said that this will offer “strengthening the quality of banks.” This includes the treatment of non-restored assets in a crisis such as domestic software costs and deferred tax assets.

This is the “This” assets are adjustable.

The package of other changes that will go to parliament next year includes measures to increase regulatory powers and consider the best bankers.

The package will provide high-level manager regime to clarify the tasks of the Board and the executive staff for all banks – to advance the responsibilities to the pre-potential sanctions.

In addition, the regulator offers subtle banks, as well as the early intervention of the risks, including the power of more tools to apply to dividends and capital requirements. In addition, there are also a clawback application for bonus payments in systematic important banks in cases of violations.

Switzerland’s political parties are divided into how UBS protection.

The Dominant Swiss People’s Party said, for example, the impact of normative changes, a parliamentary proposing to limit the size of the investment bank lending with some deputies. Liberals have raised concerns about future competitiveness, and the rest of the parties support stronger capital and liquidity requirements.

The Swiss Democracy system means that the package is still in the national vote. A bill adopted in Parliament, almost 9 million people can be challenged by a referendum if 50,000 signatures are collected in the country. This will delay the law by 2029 – or to kill completely.

UBS did not comment immediately offered reforms.