UBS CEO Ermotti Criticizes Proposed Swiss Banking Regulations

Ermotti described the current legislative moment as a critical juncture for the Swiss financial sector, comparable to the instability seen in March 2023. He expressed particular concern regarding the Council of States' recent output, suggesting it ignores the input of industry participants and risks imposing excessively strict capital requirements on a bank that already operates under some of the world's most rigorous oversight.

The CEO emphasized that shareholders, who provided vital capital during the acquisition of Credit Suisse, are being sidelined. While he expressed openness to a 50 percent equity backing requirement for foreign subsidiaries, he remained critical of the broader draft. UBS maintains that it will continue to engage with lawmakers, seeking a path that secures the nation's financial standing without placing undue burdens on its workforce and international client base. For now, Ermotti declined to outline any specific corporate retreat or structural changes should the proposed rules become law.