UBS Group CEO Sergio Ermotti has expressed his concerns about proposed stricter banking regulations in Switzerland. He believes that any regulatory measures should be targeted and proportionate.

Ermotti used an analogy to illustrate his point, comparing a broad regulatory tightening to reducing speed limits for all drivers because of the actions of one irresponsible individual. He referred to the recent challenges faced by Credit Suisse, which UBS acquired in 2023.

Ermotti also discussed the progress of integrating Credit Suisse into UBS, aiming for completion by 2026. However, he acknowledged that merging IT systems presents significant challenges. Ermotti cautioned against superficial discussions about large banks that could result in detrimental long-term decisions for Switzerland's financial sector.

The Swiss government plans to introduce new rules in 2025 to reduce taxpayer risks during potential banking crises. These rules may impose stricter capital requirements on UBS, potentially requiring an additional 15 to 25 billion Swiss francs in equity. UBS is concerned that these measures could put it at a disadvantage compared to foreign competitors.