ZURICH, Sept 24 (Reuters) — Swiss lawmakers have voted to slap stricter financial safeguards on UBS, signaling a major shift in a country long known for its bank-friendly policies following the historic collapse of Credit Suisse.
In a surprisingly decisive vote, the upper house of parliament passed new regulations requiring UBS to back its international business units with significantly higher capital reserves. The decision directly defied aggressive lobbying from the banking giant and major business groups, which warned the tougher rules could hurt Switzerland’s financial competitiveness.
The political backlash highlights deep public anxiety in Switzerland over the sheer size of UBS. After taking over its failing rival Credit Suisse in 2023, UBS now commands a balance sheet larger than the entire Swiss economy—leaving taxpayers nervous about the cost of a potential future bailout.
Recent national polls show nearly 80% of Swiss voters support stricter regulations on the bank, even if it means lower dividends or reduced growth.
Despite last-minute warnings from UBS executives—including CEO Sergio Ermotti and Chairman Colm Kelleher, who hinted the bank might reconsider its long-term future in Switzerland if regulations become too harsh—lawmakers across the political spectrum voted to prioritize public accountability over corporate interest.
The proposed capital rules now head to the lower house of parliament for further debate before becoming law.
