Stricter capital requirements for big bank UBS have a hard time

The Federal Council wants internationally active systemically important banks to be required to fully capitalize their foreign subsidiaries in future. Currently, this requirement is still around sixty percent.

Reactions to the new rules show that they are controversial. "The measure is not proportionate and it weakens the Swiss financial center in global competition," writes the SVP. The GLP finds it "problematic that the capital adequacy requirements for foreign shareholdings in the parent company are being presented in isolation and before the other banking regulation packages have been completed." The SP and the Greens support the proposals.

The cantons are saying "yes, but": they are insisting on regulation with a sense of proportion. Several large cantons reject the proposal altogether.