UBS CEO Ermotti Warns Bank Could Exit Switzerland Over Proposed $16bn Capital Rules

UBS Chief Executive Sergio Ermotti warned the bank could leave Switzerland, saying it is assessing the "long-term consequences" of proposed capital rules that would require it to hold an extra $16 billion in funding. He spoke after UBS's latest results, calling the reforms a threat to its ability to compete globally. Ermotti said he was "very concerned" by changes to the country's "too big to fail" rules, drafted after Credit Suisse's 2023 collapse and UBS's state-backed rescue of its rival. The deal left UBS with a balance sheet nearly twice the size of the Swiss economy. The proposals, heading for a final parliamentary debate in December, would penalize UBS's "global reach," Ermotti said, adding that shareholders—described as "the first line of defence in a period of stress"—were not being considered. The warning follows pressure from investors Cevian and Artisan Partners to relocate. The UK has pitched itself as a potential new home, with former chancellor Rachel Reeves holding talks about moving UBS's headquarters and listing there.