UBS is facing regulatory scrutiny from the Swiss Financial Market Supervisory Authority (Finma) following its integration of Credit Suisse.
Finma has mandated UBS to revise its emergency plans to ensure it is adequately prepared for potential restructuring and liquidation scenarios.
The annual approval of UBS's stabilization and emergency plans has been suspended by Finma due to challenges in assessing the bank's capacity for reorganization after the merger.
Finma's concerns revolve around UBS's ability to be effectively restructured or liquidated, particularly in light of the recent incorporation of Credit Suisse.
UBS is currently relying on manual data aggregation until automated processes can be fully implemented.
Additional strategies for crisis management, including the possibility of exiting the market or selling specific business units, must be developed by UBS.
The bank is tasked with aligning with recommendations from the Federal Council's report on "too-big-to-fail" regulations.
The integration of Credit Suisse into UBS Switzerland will have implications for the bank's emergency planning, particularly regarding liquidity and refinancing strategies.
UBS has reiterated its commitment to meeting the necessary requirements for a potential wind-down in a crisis and claims to have a robust business model and loss-absorbing capacity.
As a global systemically important bank, UBS is subject to stringent crisis prevention requirements and must develop stabilization and emergency plans.
The recent developments highlight the increased regulatory scrutiny faced by UBS after acquiring Credit Suisse.
UBS must navigate these challenges while remaining compliant with regulatory expectations and ensuring the stability of the Swiss financial system.