In order to better protect taxpayers from the corporate failure of a systemically important bank in future, the Swiss government presented a catalogue of 22 measures for “too-big-to-fail” regulation on Wednesday. However, there is no single panacea, said Finance Minister Karin Keller-Sutter in an interview with the Schweiz am Sonntag newspaper.
This content was published on
2 minutes
Keystone-SDA
Keller-Sutter emphasised the importance of the proposal that the Swiss parent companies of systemically important banks must in future back their foreign holdings with up to 100% equity. Currently, the capital adequacy requirement is 60%, she said.
More
More
How to tame UBS without making the bank toothless
This content was published on
Swiss government proposals to regulate Too Big to Fail banks meets sceptical response.
UBS already has to build up additional equity capital because it has become much larger as a result of the Credit Suisse takeover, Keller-Sutter said. The Financial Market Authority has given UBS until 2030 to implement these progressive capital surcharges.
However, the capital for additional equity backing for the foreign subsidiaries is not part of this because the amount of backing required has not yet been determined, she said. “If this measure is implemented, UBS will have to build up more capital.” She said the exact amount would depend on UBS’s performance and the exact wording of the ordinance. “But we are talking about tangible, significant sums.”
‘Not a risk-free business’
Dividing up the bank, so a pure separation banking system, is an illusion and not necessarily less risky, Keller-Sutter believes. Lehman Brothers, for example, effectively operated only one business, investment banking, she said. “Nevertheless, its demise triggered a global financial crisis.”
“UBS’s main business is asset management. This is also not a risk-free business,” says Keller-Sutter, explaining that the government’s measures were aimed at limiting the specific risks.
Translated from German by DeepL/ts
More
More
Former Credit Suisse executives can keep bonuses
This content was published on
The former managers of the defunct major bank Credit Suisse will not be forced to repay their bonuses.
This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo.ch we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles.
If you want to know more about how we work, have a look here, and if you have feedback on this news story please write to english@swissinfo.ch.
This content was published on
Production in Switzerland's secondary sector fell in the second quarter of 2025. The decline was more pronounced in the construction sector than for industry.
Swiss army recruits remain in hospital after gruelling test exercise
This content was published on
Four potential recruits for the elite Swiss grenadier unit were hospitalised last week after taking part in a gruelling exercise in hot weather. Three remain in hospital with one placed temporarily in an artificial coma.
University of Basel to mark 125th anniversary of Nietzsche’s death
This content was published on
This month the University of Basel is celebrating the German philosopher Friedrich Nietzsche, who was a professor there from 1869 to 1879. August 25th marks the 125th anniversary of his death.
Trump tariffs: Swiss brands struggle to adapt to 39% tariff
This content was published on
Swiss brands like Victorinox, the manufacturer of the iconic pocket knife, are struggling to adapt to the 39% tariff imposed by the United States on imports of Swiss goods.
Fish and aquatic plants are under ‘severe pressure’ in Swiss rivers and lakes
This content was published on
Fish, aquatic plants and other animals in Swiss rivers, lakes and streams remain under 'severe pressure', according to the Federal Office for the Environment.
Swatch withdraws ‘slanted eyes’ ad after China uproar
This content was published on
The Swiss watch manufacturer Swatch has apologised and withdrawn an advertising campaign worldwide following accusations of racism in China. The ad features a model pulling the corners of his eyes.
Police identify bodies of three climbers who died in Swiss Alps
This content was published on
Police have formally identified the bodies of three climbers who died in the Upper Valais region in early August: they are from Germany, France and Austria.
Bern exhibition reunites Kirchner paintings after 92 years
This content was published on
The painting Sonntag der Bergbauern (Alpsonntag) [Sunday of the Mountain Farmers (Alp Sunday) by Ernst Ludwig Kirchner (1880-1938) is being transferred from Berlin to Bern to feature in an upcoming exhibition at Kunstmuseum Bern.
Voters approve extension of Engadine Airport in Switzerland
This content was published on
Residents in the Upper Engadine region gave the greenlight on Sunday to the expansion of the regional airport at Samedan, one of Europe’s highest airports (1,707 metres) that serves the nearby resorts of St Moritz and Davos.
Private equity group Advent to buy U-Blox for $1.3 billion
This content was published on
Private equity group Advent International has agreed to take over Switzerland's U-Blox Holding in a cash offer worth CHF1.05 billion ($1.30 billion).
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.