UBS has enough capital to satisfy planned Swiss reforms, central bank says

ZURICH, July 2 (Reuters) - The Swiss National Bank said on Thursday that UBS is so well capitalised that it already meets proposed tougher capital requirements at the heart of efforts to strengthen banking rules after Credit Suisse's collapse in 2023.

After UBS acquired its fallen rival, authorities moved to impose stricter rules on Switzerland's last remaining global bank to help prevent a repeat crisis.

Among the measures, the government wants UBS to fully capitalise its foreign subsidiaries, and calculates its raft of proposals would require the bank to add about $20 billion in common equity tier 1 (CET1) capital.

"It is proportionate," SNB Vice Chairman Antoine Martin told reporters in Bern, referring to the government's capital pitch. "It would put UBS in line with international peers with respect to capital requirements."

UBS argues the demands are excessive and risk undermining the competitiveness of Switzerland's financial sector.

In its 2026 financial stability report, the SNB said UBS's eligible CET1 capital exceeds the fully applied requirements of existing rules applicable from 2030 by $13 billion.

The Zurich-based lender also held available reserves of $9 billion at the end of 2025, the SNB added.

"According to the pro forma calculations of the authorities and including reserves, UBS already has sufficient capital to meet the proposed requirements," the SNB said.

The central bank noted that the government plans a seven-year transition period for the new rules.

"Taking into account this transition period and the bank’s expected profits, UBS can be expected to be able to comply with the proposed capital measures, while continuing to distribute profits to its shareholders," the SNB said.

The SNB said since its 2025 financial stability report, economic and financial conditions have been challenging, in particular because of the conflict in the Middle East, trade tensions, and political and economic uncertainty.

However, it said Swiss banks were well placed to cope.

"The Swiss banking sector is well positioned to withstand the current challenging macroeconomic and financial environment," the SNB said.

(Reporting by Dave Graham and Ariane Luthi, Editing by Friederike Heine and Louise Heavens)