Switzerland's Finance Minister, Karin Keller-Sutter, has emphasized that capital requirements for UBS under new banking regulations should be "proportionate." The goal is to balance the competitiveness of Switzerland's financial sector with the need to protect taxpayers.
Swiss authorities are currently considering revisions to banking rules to prevent a recurrence of the 2023 Credit Suisse collapse, which resulted in UBS acquiring its long-standing rival.
In a televised interview on Sunday, Keller-Sutter noted that UBS has become exceptionally large relative to the Swiss economy, describing the situation as "unique." This has prompted discussions on how to adapt regulations to address the challenges posed by such a significant financial institution.
Finance Minister Karin Keller-Sutter emphasized the importance of implementing appropriate protective and preventive measures for UBS, citing the need for sufficient liquidity and equity capital. She made these remarks during an interview with the national broadcaster SRF.
Keller-Sutter highlighted that UBS is already subject to stricter capital requirements, including those outlined in the Basel III framework, which will take effect in January. However, she acknowledged that not all countries are implementing these rules in the same way.
In April, she described estimates that UBS might need to hold an additional $15 billion to $25 billion in capital under Swiss government proposals as "plausible." When asked in the recent interview if the $25 billion figure remains accurate, Keller-Sutter said she could not confirm it. She stressed that the overall package of measures was what truly mattered.
"This must be approached in a proportionate and targeted manner," she stated, emphasizing the need to strike a balance between maintaining a competitive financial sector and safeguarding taxpayers.
Ahead of a forthcoming parliamentary report on the handling of the Credit Suisse crisis, Finance Minister Karin Keller-Sutter emphasized that primary responsibility rested with the bank's management.
When asked about the possibility of incoming U.S. President Donald Trump introducing significant trade tariffs on other nations, Keller-Sutter noted it was premature to speculate.
"However, if such tariffs were implemented, they would undoubtedly be detrimental to global trade," she remarked.