Bern, Switzerland — April 22, 2026 Swiss Federal Council tightens UBS capital requirements
The Swiss Federal Council has adopted measures requiring systemically important banks like UBS to fully back their foreign subsidiaries with common equity tier 1 capital, a move aimed at strengthening financial stability following the Credit Suisse crisis.
Key Measure Targets Foreign Subsidiaries
Under the revised Banking Act, banks deemed systemically important will no longer be allowed to finance their foreign subsidiaries partly with debt capital. Currently, only about half of these subsidiaries are secured with common equity tier 1 capital. The new rules aim to prevent losses at foreign branches from directly impacting the parent company’s equity.
The Federal Council, the Swiss National Bank (SNB), and the Financial Market Supervisory Authority (FINMA) jointly endorsed the measure, stating it was necessary to prevent future crises. "Bundesrat, SNB und FINMA sind sich einig, dass das vorgeschlagene Massnahmenpaket sinnvoll, notwendig, zielgerichtet und für die UBS tragbar ist," they said in a statement, emphasizing the package’s targeted approach.
The change is expected to raise UBS Group’s common equity tier 1 capital ratio to 15.5%, aligning it with international competitors. The adjustment also allows a bank in crisis to sell foreign subsidiaries without harming its capital ratios—a key lesson from Credit Suisse’s 2023 collapse.