UBS Required to Revise Emergency Plans

UBS is revising its emergency response strategy in light of the Credit Suisse crisis, as mandated by the Swiss financial regulator FINMA. FINMA has suspended UBS's annual assessment of its emergency plans while the bank works on enhancing its crisis management strategies to prepare for potential insolvency risks. Despite having sufficient 'bail-in' capital, UBS's current resolution strategy only allows for business continuity rather than a complete exit plan, which FINMA deems inadequate. The regulator emphasizes the need for additional options, such as market exits through business sales or shutdowns, to strengthen UBS's overall crisis preparedness. As a globally systemically important bank, UBS must meet specific crisis prevention requirements, including annual assessments of its stabilization and emergency plans. This overhaul is crucial as UBS integrates Credit Suisse and standardizes its operations.