Switzerland Proposes 7-Year UBS Capital Phase-In

The Swiss government has proposed a seven-year phased increase in capital requirements for systemically important banks that would require full capital backing for foreign subsidiaries and set a CET1 path beginning around 65% and rising by 5 percentage points annually toward a 100% target, with the phase-in slated to begin in 2028. The package, developed after the 2023 Credit Suisse rescue, could raise UBS’s capital needs by as much as $26 billion and is part of Switzerland’s 'too big to fail' reforms. UBS has strongly criticized the measures as excessive, disproportionate and not aligned with international standards, saying they would weaken its national and international competitiveness. The proposal has unsettled investors and weighed on UBS’s share price; analysts say the bank remains among the least‑favored European bank stocks and the bank has disclosed large shareholdings amid the debate. SVP leader Thomas Aeschi urged the government to seek a compromise with UBS to avoid adverse outcomes such as an opportunistic takeover by a major American bank. The government has opened a consultation period for feedback until Jan. 9, 2026, and plans to submit a final bill to parliament next year.