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The Swiss National Bank (SNB) 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 has called for reforms in the banking sector's capital regime following the 2023 collapse of Credit Suisse, which was subsequently acquired by UBS. The government aims to bolster UBS's capital to prevent similar failures, though UBS contends that increased capital requirements could hinder its competitiveness. The SNB noted that UBS's current capital position is stronger than Credit Suisse's pre-crisis status, while also highlighting ongoing risks in the mortgage and real estate markets.
The Swiss National Bank (SNB) has identified substantial loss potential at UBS, despite the bank's improved capital situation following the Credit Suisse takeover. The SNB supports government proposals for banking regulation, emphasizing the need to address weaknesses in the current capital regime.In 2024, the SNB purchased CHF 1.2 billion in foreign currencies, reversing its previous year's trend of large-scale sales aimed at strengthening the franc. With inflation now within target range, further interest rate cuts are anticipated.
The Swiss National Bank (SNB) has identified substantial loss potential at UBS, despite improved adjusted earnings following its acquisition of Credit Suisse. While UBS meets future capital requirements under too-big-to-fail regulations, integration costs and legacy risk positions currently weaken its loss-bearing capacity. The SNB supports government proposals for enhanced banking regulation to address existing capital regime weaknesses.
The Swiss National Bank has identified significant weaknesses in the current capital regime for the banking sector, emphasizing the need for reform. In its annual report, the central bank pointed out concerns regarding UBS's capital support for its subsidiaries, which were previously highlighted in a report last June.
The Swiss National Bank has emphasized the need to address weaknesses in the current capital regime for the banking sector. In its annual report, the central bank pointed out UBS's challenges in securing adequate capital for its subsidiary holdings, a concern previously raised in a report last June.
The Swiss National Bank purchased foreign currency worth 1.2 billion Swiss francs ($1.36 billion) in 2024, significantly decreasing its market interventions after successfully controlling inflation. This contrasts sharply with the 132.9 billion Swiss francs sold in 2023 to strengthen the franc against rising import prices.
Barclays' chief Japan economist, Naohiko Baba, anticipates limited impacts from Trump tariffs, particularly in the automobile sector. He notes that with wages growing faster than inflation, rising consumption could lead to a potential rate hike from the Bank of Japan.
The SNB's annual report highlights that UBS's current capital position is stronger than that of Credit Suisse prior to the crisis. This assertion underscores the resilience of UBS in the face of financial challenges, reflecting a more stable banking environment.
Lower inflation is creating an opportunity for more interest rate cuts, according to Morgan Stanley. This shift in economic conditions could lead to adjustments in monetary policy aimed at stimulating growth. Investors and analysts are closely monitoring these developments for potential impacts on the market.
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Swiss National Bank calls for stronger capital regulations after Credit Suisse collapse
08:15 18.03.2025
swiss national bank calls for stronger capital regulations after credit suisse failure
08:15 18.03.2025
Swiss National Bank warns of significant loss risks for UBS
08:06 18.03.2025
Swiss central bank warns of substantial loss potential at UBS
08:01 18.03.2025
Swiss National Bank calls for reforms in banking capital regime
07:43 18.03.2025
Swiss National Bank calls for reforms in banking capital regime
07:43 18.03.2025
Swiss National Bank reduces forex interventions to 1.2 billion francs in 2024
07:26 18.03.2025
Barclays forecasts limited impact from Trump tariffs on Japan's economy
07:25 18.03.2025
SNB highlights UBS's stronger capital position compared to Credit Suisse before crisis
07:23 18.03.2025
lower inflation opens door for potential interest rate cuts according to morgan stanley
07:17 18.03.2025
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