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Capital Requirements · Financial Regulation · Swiss Banking · UBS
UBS Chairman Colm Kelleher issued a strong warning that proposed Swiss capital requirements, potentially compelling the bank to carry an additional $22 billion, pose a significant threat to UBS's business model and financial stability, raising questions about its long-term future in Switzerland following the Credit Suisse collapse.
The Swiss government seeks these stringent new banking rules after the 2023 failure of Credit Suisse, which UBS acquired in an emergency takeover. Kelleher affirmed UBS's desire to remain headquartered in Switzerland, stating the bank will not shrink its size and maintains ambitious growth strategies in Asia and the United States.
He stressed that key business decisions become unavoidable if these "extreme proposals" are confirmed. UBS CEO Sergio Ermotti vowed to "fight until the last minute" to defend the bank's position.
The extent of UBS's share buybacks remains contingent on the final regulatory regime. In contrast, the Ethos Foundation, a proxy advisor representing pension funds, supports stricter capital requirements, with CEO Vincent Kaufmann arguing against executives being rewarded while taxpayers bear risk.
Kelleher was re-elected chairman with 88.16% of votes.
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