Swiss parliament panel backs compromise allowing UBS to meet 50% of capital with debt

Published Aug 31, 11:13 PM UTC

A key panel of the Swiss parliament has backed a compromise proposal regarding capital requirements for UBS, the country's largest bank. The proposal would allow UBS to meet 50% of the new capital requirement amount with debt instruments rather than equity. This decision represents a middle ground between stricter capital rules advocated by some lawmakers and the bank's concerns about competitiveness. The panel's backing is a significant step in the legislative process, though the proposal must still be approved by the full parliament. The compromise aims to strengthen UBS's financial resilience following its acquisition of Credit Suisse, while avoiding overly burdensome regulations that could hamper the bank's ability to compete globally. The exact total capital increase required and the timeline for implementation remain to be finalized.