Switzerland continues to tighten oversight of its banking sector. This time, the Swiss National Bank (SNB) strongly supports stricter regulations designed to prevent another crisis like the 2023 Credit Suisse collapse.
SNB Vice Chairman Antoine Martin recently confirmed the central bank’s backing of the government’s reform plan. He emphasized that stronger capital and liquidity requirements will reinforce stability across the financial system.
The proposed measures would require major banks, including UBS, to hold significantly more capital. In fact, UBS may need up to $24 billion in additional reserves. Moreover, regulators want large banks to maintain enough high-quality collateral to access central bank liquidity during emergencies.
Instagram | @wealth | The Swiss National Bank supports stricter capital and liquidity rules to ensure major banks stay stable during future financial shocks.
Additional reforms would prevent UBS from counting software and deferred tax assets toward its core capital. Meanwhile, foreign subsidiaries would need full backing through Common Equity Tier 1 capital.
UBS has rejected the proposals, arguing that tighter rules could weaken Switzerland’s global competitiveness. However, policymakers prioritize resilience after the Credit Suisse failure.
The Swiss government plans to release its final framework soon. UBS CEO Sergio Ermotti expects clearer guidance within months.
As regulators refine these measures, Switzerland signals one clear message: financial stability comes first, and stronger safeguards aim to protect the system long term.
