Investment Banking

UBS capital hike will fall short, experts warn

Swiss authorities want to ratchet up the bank’s reserves, but that might not make the system safer, according to compliance veterans

UBS faces a $25bn hit, but pushback is growing to Swiss plans to protect the banking sector
UBS faces a $25bn hit, but pushback is growing to Swiss plans to protect the banking sector Photo: Emanuele Cremaschi/Getty Images

Swiss authorities are facing significant pushback against plans to force UBS to hold more reserves, as regulatory experts question whether upping capital requirements will be enough to avoid the next crisis.

On 10 April, the Swiss government outlined a package to safeguard what is now the pivotal asset in its banking system after UBS rescued ailing rival Credit Suisse last year.

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