Key insights
- UBS Chairman warns that proposed Swiss capital rules could negatively impact the bank's business model and growth ambitions in Asia and the US. While committed to Switzerland, UBS may need to evaluate measures to address the negative effects of the proposals. This introduces uncertainty and could slightly dampen investor sentiment towards US equities with exposure to global banking.
Investing.com -- UBS Chairman Colm Kelleher warned on Wednesday that key business decisions may become unavoidable as the bank faces proposed Swiss capital requirements that have drawn criticism from markets and shareholders.
Speaking at UBS’s annual general meeting in Basel, Switzerland, Kelleher said the new banking rules proposed by the government pose a serious risk to the bank’s business model while providing little meaningful improvement to financial stability.
The chairman emphasized UBS’s commitment to Switzerland but ruled out reducing the bank’s size, highlighting growth ambitions in Asia and the United States.
"We want to remain headquartered in Switzerland," Kelleher said. "In the meanwhile, it is our duty to evaluate appropriate measures to address, if confirmed, the negative effects of these extreme proposals."
Switzerland is working to introduce new capital rules following the collapse of Credit Suisse in 2023, which UBS acquired in a state-engineered emergency takeover. The Federal Council is expected to clarify its capital proposals later this month.
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