The Swiss government wants to prevent a second Credit Suisse debacle with stricter rules for UBS. The Ministry of Finance recommends stricter capital requirements, especially for the country’s largest bank. “This is intended to strengthen the capital base and improve resolvability,” said the report on the reform of banking regulation published on Wednesday. The government did not provide specific figures. In addition, the 339-page report on the so-called “Too Big To Fail” regulations contains a wealth of other suggestions such as better liquidity provision by the Swiss National Bank or tougher sanctions against management. Before possible implementation, the 22 measures must still be dealt with by Parliament. After the emergency takeover of Credit Suisse last year, UBS has reached a size that worries many politicians and experts in Switzerland. If the major bank ever gets into trouble, liquidation and nationalization would be the two likely options. If nationalized, the country would risk hundreds of billions of francs and endanger the national budget. The reforms are intended to prevent this.
Swiss government demands more buffer for UBS economy
