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Swiss Finance Minister Karin Keller-Sutter emphasized that capital requirements for UBS must be "proportionate" to balance financial competitiveness and taxpayer protection. Following the Credit Suisse collapse, she noted UBS's significant size relative to the Swiss economy necessitates stricter liquidity and equity measures. While estimates suggest UBS may need an additional $15 billion to $25 billion in capital, Keller-Sutter highlighted the importance of a comprehensive approach to regulation.
Swiss Finance Minister Karin Keller-Sutter emphasized that capital requirements for UBS must be "proportionate" to balance financial sector competitiveness with taxpayer protection. In light of UBS's significant size relative to the Swiss economy, she noted the need for enhanced liquidity and equity measures, acknowledging stricter capital requirements under Basel III. Estimates suggest UBS may need to hold an additional $15 to $25 billion in capital, though the exact figure remains uncertain as the government seeks a comprehensive approach.
Switzerland's Finance Minister Karin Keller-Sutter emphasized that capital requirements for UBS must be "proportionate" to balance financial competitiveness and taxpayer protection. Following the 2023 Credit Suisse collapse, she noted UBS's significant size relative to the Swiss economy and acknowledged the need for stricter capital measures, estimating an additional $15 billion to $25 billion in capital might be necessary. Keller-Sutter highlighted that the responsibility for the Credit Suisse crisis primarily lies with the bank's management.
The Parliamentary Investigation Committee (PUK) is set to release its long-awaited report on the end of Credit Suisse, following a year and a half of inquiry. The report comes amid widespread resentment over the federal government's use of emergency law to rescue the bank from bankruptcy after UBS's takeover in March 2023. Key figures such as Marlene Amstad, Ueli Maurer, Thomas Jordan, and Karin Keller-Sutter are closely scrutinized as the implications of the report unfold.
The Basellandschaftliche Kantonalbank (BLKB) faces criticism for its subsidiary Radicant, prompting calls from conservative politicians to revert to a traditional regional bank model focused on loans for households and SMEs. This initiative, seen as politically motivated and regressive, risks undermining BLKB's competitiveness and attractiveness in a modern banking landscape. Despite the need for oversight, drastic operational changes are deemed inappropriate, as BLKB has not engaged in misconduct warranting such measures.
UBS, Switzerland's most crucial bank, is under scrutiny regarding its capital adequacy as it prepares for regulatory assessments following the CS debacle. While UBS claims it doesn't need stricter capital regulations, experts argue that increased equity is essential to mitigate risks and protect taxpayers from potential fallout. The Federal Council must decisively establish the bank's capital requirements to ensure financial stability.
The Swiss population prefers cuts to the army over reductions in pensions, according to a recent survey amid proposed federal spending cuts. While nearly two-thirds oppose savings on the AHV and IV, opinions on where to cut vary widely, with development aid and media funding frequently mentioned. A significant portion of respondents also supports generating additional revenue through taxes, such as a financial transaction tax.
The Swiss Federal Council has opted for a VAT increase to finance the 13th AHV pension, rejecting a mixed funding proposal that included higher employee contributions. This decision, influenced by a right-wing majority, faces challenges in Parliament and may lead to further discussions on pension reforms by 2026. A center-left alliance is pushing for a re-evaluation of the mixed financing solution, which could impact future pension funding strategies.
The 13th AHV pension will require an additional CHF 4.2 billion annually starting in 2026. Social Affairs Minister Elisabeth Baume-Schneider proposed a mixed funding solution involving increased wage contributions and VAT, but faced opposition from conservative parties, leading to a pure VAT increase being adopted. The final decision remains uncertain as a center-left alliance may revive the mixed variant in the Council of States.
The Federal Council is implementing an austerity package to address a budget shortfall, with over four billion francs at stake. Key measures include increased taxes on capital withdrawals from retirement pillars and the controversial decision to maintain bridging benefits for older unemployed individuals, despite internal disagreements. The debate is expected to intensify as the proposals move to parliament, where resistance to cuts may grow.
Karin Keller-Sutter
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The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
swiss finance minister calls for proportionate capital requirements for ubs
15:55 01.12.2024
swiss finance minister calls for proportionate capital requirements for UBS
15:55 01.12.2024
swiss finance minister calls for proportionate capital requirements for UBS
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