UBS has been instructed by Swiss financial market regulator FINMA to improve its contingency plans due to concerns about insolvency risks.
The regulator has temporarily halted the annual assessment of UBS's contingency strategies while the bank reevaluates its crisis management approach.
FINMA has stressed the importance of enhancing crisis preparedness and resolution planning for systemically important banks, drawing on lessons learned from the recent Credit Suisse crisis.
The regulator's directive is aimed at ensuring that UBS, as Switzerland's last globally systemically important bank, is better prepared to handle potential financial distress.