UBS capital requirements should be proportionate, minister says By Reuters

ZURICH (Reuters) -Capital requirements location for UBS below contemporary banking regulations must always be “proportionate”, as Switzerland attempts to strike a balance between monetary sector competitiveness and holding taxpayers, Finance Minister Karin Keller-Sutter talked about.

Swiss authorities are weighing up how one can overhaul banking suggestions in a instruct to prevent a repeat of the 2023 collapse of Credit Suisse, which resulted in its takeover by its stale rival UBS.

In an interview broadcast on Sunday, Keller-Sutter talked about UBS used to be now a extraordinarily huge bank in relation to the size of the Swiss economy, rising a “particular area”.

“And so the appropriate holding and preventative measures must always be taken; that formulation liquidity, that formulation fairness capital,” she told nationwide broadcaster SRF (NS:).

She acknowledged UBS already faced optimistic stricter capital requirements, including below Basel III suggestions efficient from January that now not all countries are implementing identically.

In April, Keller-Sutter talked about estimates that UBS would have to protect one other $15 billion to $25 billion in capital below her govt’s proposals indulge in been “plausible”.

Asked within the interview whether the $25 billion figure used to be level-headed accurate, Keller-Sutter talked about she might maybe now not assert. In the tip, what counted used to be your complete bundle of measures, she notorious.

“This must always be looked at in a proportionate, centered formulation,” she talked about, arguing Switzerland have to fetch a compromise between having a competitive monetary sector and holding taxpayers.

Addressing an upcoming parliamentary document into how authorities handled the Credit Suisse crisis, Keller-Sutter wired that the predominant blame lay with the bank’s management.

Asked in regards to the threat of incoming U.S. President Donald Trump imposing hefty alternate tariffs on varied countries, Keller-Sutter talked about it used to be too early to speculate.

“However of course if such tariffs did near about, it might maybe be poison for world alternate,” she talked about.