Swiss Business Groups Lobby Senate to Ease UBS Capital Rules Ahead of Sept. 23 Vote

Swiss business associations urged upper house lawmakers to adopt a softer capital compromise for UBS Group AG before a scheduled Sept. 23 vote, warning that stricter requirements would raise financing costs and curb credit supply for small and midsize enterprises. In a letter dated Sept. 18, the heads of economiesuisse and lobby groups for SMEs, manufacturers, multinationals and pharmaceutical companies backed the 50% Common Equity Tier 1 and 50% Additional Tier 1 bond option, calling the government's 100% CET1 proposal "excessive." The government estimates its full package would require UBS to hold roughly $20 billion in additional capital. UBS calculates the 50% AT1 option would require about $13 billion. CEO Sergio Ermotti and Chairman Colm Kelleher have said the AT1 compromise would be painful but manageable. The lobbying push followed the 2023 collapse of Credit Suisse, which prompted calls for stricter oversight of Switzerland's sole remaining global bank.