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The Swiss National Bank has called for improvements in the capital regime of the banking sector following the 2023 collapse of Credit Suisse, which was taken over by UBS. The government is considering stricter regulations, particularly regarding UBS's capital requirements for its foreign subsidiaries, despite UBS arguing that it is already well-capitalized compared to global peers. The SNB noted positive market indicators for the integration of Credit Suisse into UBS, while also highlighting ongoing risks in the mortgage and real estate markets.
The Swiss National Bank (SNB) has identified substantial loss potential at UBS, particularly following its integration of Credit Suisse. While UBS's adjusted earnings improved in 2024 and it meets future capital requirements, the SNB warns that integration costs and legacy risk positions could impair its loss-bearing capacity. Additionally, the SNB supports government proposals for banking regulation to address weaknesses in the current capital regime.
The Swiss National Bank has called for improved banking regulations following the Credit Suisse crisis, emphasizing the need for stronger capital and liquidity requirements. In response, Switzerland plans to enforce stricter rules, particularly for UBS, which is under scrutiny regarding its capital ratios and the management of its foreign subsidiaries. While UBS is seen as more robust than Credit Suisse prior to the crisis, concerns remain about its integration costs and potential losses from inherited risk positions.
The Swiss National Bank has called for improved banking regulations following the Credit Suisse crisis, emphasizing the need for stronger capital and liquidity requirements. In response, Switzerland plans to enforce stricter rules, particularly for UBS, which is under scrutiny regarding its capital ratios and the management of its foreign subsidiaries. While UBS is deemed more robust than Credit Suisse pre-crisis, concerns about integration costs and potential losses from Credit Suisse's risk positions could impact its financial stability.
UBS has allocated $370 million in bonuses to former Credit Suisse employees. This significant payout reflects the bank's strategy to retain talent following its acquisition of the troubled rival. The move underscores UBS's commitment to integrating the new workforce effectively.
UBS has postponed its decarbonization target from 2025 to 2035, citing an expanded corporate real estate portfolio due to its acquisition of Credit Suisse. This delay reflects a broader trend among banks reassessing climate commitments, with UBS remaining a member of the Net-Zero Banking Alliance despite potential changes to its climate goals. The bank's latest sustainability report indicates a shift in focus, removing direct links between senior management compensation and climate objectives.
UBS has eliminated specific targets for promoting women and minorities in management, previously aiming for 30% women and 26% ethnic minorities by 2025. The bank has also postponed its goal for achieving net-zero operational emissions from 2025 to 2035, citing an expanded real estate portfolio after acquiring Credit Suisse.
Switzerland's Finance Minister, Karin Keller-Sutter, is resisting UBS's lobbying efforts, focusing on new regulations that prioritize taxpayer interests following Credit Suisse's collapse. Proposed measures include tougher capital requirements to ensure large banks can dismantle without jeopardizing financial stability, despite UBS's warnings of increased costs for businesses and households. This regulatory approach may influence global financial governance and encourage other countries to enhance their banking safety measures.
The Swiss National Bank is advocating for stricter banking regulations following the Credit Suisse collapse and its acquisition by UBS. While UBS is deemed well-capitalized compared to global peers, debates continue over the adequacy of its capital ratios, particularly concerning foreign subsidiaries. The SNB acknowledges UBS's robust position but warns of substantial loss potential due to integration costs and risks from Credit Suisse's legacy.
Swiss Finance Minister Karin Keller-Sutter stated that the government will not be influenced by UBS's intense lobbying as it develops new financial regulations following the Credit Suisse collapse. She emphasized the need for higher capital requirements to protect taxpayers and ensure that systemically important banks like UBS can be resolved in a crisis. Keller-Sutter confirmed ongoing communication with UBS's management but clarified that the government must balance business interests with taxpayer protection.
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