UBS is facing pressure to revise its emergency plans following the crisis at Credit Suisse.
The Swiss government's decision to merge Credit Suisse with UBS instead of allowing it to fail has raised questions about the effectiveness of regulations governing systemically important banks in Switzerland.
The Swiss Financial Market Supervisory Authority (FINMA) has mandated that UBS reassess its resolution strategies, particularly in light of the integration of Credit Suisse.
FINMA has identified the need for UBS to develop additional options for crisis management, including the potential for selling the bank or shutting down specific business units without destabilizing the financial system or relying on taxpayer funds.
Stefan Walter, the new director of FINMA, has called for stricter regulations and enhanced powers for FINMA to intervene proactively when financial imbalances arise.
The future of "too big to fail" regulations in Switzerland remains uncertain, and the regulatory landscape will likely be influenced by the parliamentary investigation report on the Credit Suisse debacle.
The integration of Credit Suisse into UBS has raised concerns about the concentration of risk in the Swiss banking system.
UBS's commitment to enhancing its emergency plans will depend on the regulatory environment established by FINMA and the Swiss government.
The outcome of these developments will impact not only UBS but also other major banks in Switzerland and beyond.