Finma has instructed UBS to improve its stabilization and contingency plans after acquiring Credit Suisse.

The regulatory body has stressed the importance of stronger risk management and liquidity strategies to handle the complexities that arise from the integration.

UBS needs to revise its plans to ensure operational continuity in the event of a crisis, especially considering the lessons learned from the Credit Suisse situation, such as the need for quick responses to mass deposit withdrawals.

While UBS claims to meet current requirements with a loss-absorption capacity of around $200 billion, it acknowledges the need for further development of its liquidation strategies.

The bank is already taking steps to strengthen these arrangements in line with Finma's directives.

Following the announcement, UBS shares saw a slight decline, but the bank remains confident in its business model and its ability to adapt to the changing landscape after the acquisition.