⏱ 1 min 30 read
Background
The Lex UBS plans to strengthen the capital coverage of large Swiss banks' foreign subsidiaries. UBS is the only bank concerned. In September, the Council of States backed 90% coverage by hard capital.
The key points
UBS chief Sergio Ermotti was heard on 26 October by the economic affairs committee of the National Council. The hearing lasted two and a half hours.
Finance Minister Karin Keller-Sutter and Roman Studer, head of the Swiss Bankers Association, also took part. The chairs of the SNB and Finma, Martin Schlegel and Marlene Amstad, were present.
Key figures
- Federal Council proposal: 100% coverage by hard capital (CET1).
- Option voted by the Council of States: 90% CET1.
- Option backed by UBS: 50% CET1 and up to 50% AT1.
- Current coverage of UBS's foreign subsidiaries: 45%.
What it means for businesses
According to the committee, some fear that overly strict regulation will harm UBS's competitiveness. Others see the Federal Council's plan as a compromise that should not be watered down.
Who says what
National Councillor Hans-Peter Portmann (PLR/ZH) would like to propose 75% coverage by hard capital. Sergio Ermotti did not say whether he would support this option.
According to committee member Sidney Kamerzin (Centre/VS), this option would rather be backed by the UDC and part of the PLR. The Centre and the left lean towards the 90% option.
What's next
The committee agreed to consider the bill and is due to decide on its details on 23 and 24 November. National Council debates are scheduled for December.
