UBS set to face Swiss government decision on capital in April
The state will also decide on a proposal for capital backing of the lender’s foreign units
Published Sun, Mar 15, 2026 · 11:21 PM
THE Swiss government is set to decide in April on how much additional capital it wants UBS to hold, as the administration finalises new regulations following the collapse of Credit Suisse.
The Federal Council will determine new rules for the valuation of intangible capital, SonntagsBlick newspaper reported on Sunday (Mar 15), without saying where it got the information.
Separately, a parliament document shows that the executive will also decide on a proposal for capital backing of the lender’s foreign units.
The two measures are central to the government’s reform agenda adopted after Credit Suisse failed and was subsequently taken over by UBS. Additional capital requirements of as much as US$26 billion are being discussed to make UBS more resilient in the event of a future crisis.
The government intends to require the bank to fully deduct the value of software and deferred tax assets from its regulatory capital, SonntagsBlick reported. All ministers are in favour of this stance, the newspaper said. The new rules are due to take effect from Jan 1, 2027, with a phase-in period.
The Swiss Federal Department of Finance said the government will decide within the first half of this year on the matter. UBS declined to comment.
According to the parliament schedule, lawmakers are set to debate a new law governing how much capital the parent bank has to hold against its foreign units in early May. That gives the government only until Apr 22, when it holds a scheduled meeting, to decide on the draft Bill.
While parliament will determine the capital backing required for foreign participations, the government can decide the rules for asset valuation. SonntagsBlick reported that ministers intend to decide on their stance on both issues on the same date.
In January, people familiar with the executive’s thinking told Bloomberg that the government is likely to insist on full backing of foreign units, but remains open to softening the requirement to fully deduct software and deferred tax assets. BLOOMBERG
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