22nd Sep 2026 10:27
(Alliance News) - UBS Group AG shares fell on Tuesday ahead of a key Swiss parliamentary vote on Wednesday on tougher capital requirements drawn up following the 2023 collapse of lender Credit Suisse and subsequent takeover by UBS.
Switzerland's upper house of Parliament is due to consider competing proposals governing how much capital UBS must hold against its foreign subsidiaries, including the government's plan requiring 100% backing with common equity tier 1 capital.
Shares in UBS were down 1.4% at CHF41.16 on Tuesday morning, making it the worst performer on the blue-chip SMI 20 index.
Ahead of the vote, the Zurich-based bank on Monday published an additional position paper arguing that regulatory changes should be targeted, proportionate and internationally aligned while addressing the causes of the Credit Suisse crisis.
The bank added that the "costs of extreme regulation harm the Swiss economy".
UBS backed a proposal from the majority of the Economic Affairs & Taxation Committee of the Council of States that would allow a combination of 50% CET1 and 50% additional tier 1 capital.
The bank argued that the 50-50 model would protect taxpayers as effectively as the Swiss government's proposal because it would trigger stabilising measures earlier while being more cost-efficient.
It said AT1 instruments can be converted into CET1 capital during a crisis and serve as an early-intervention tool.
UBS also rejected a separate proposal requiring 90% CET1 backing, saying it was not a meaningful compromise and would "significantly damage" its competitiveness.
Chief Executive Officer Sergio Ermotti echoed that position on Tuesday, telling a Bank of America event that the 90% proposal was "not really a compromise" compared with the government's 100% requirement and calling for a more moderate approach, according to Reuters.
Separately on Tuesday, UBS said it agreed to pay EUR5.0 million to settle a legacy Credit Suisse tax case in the Netherlands.
The agreement with the Dutch Public Prosecution Service resolves an investigation into alleged criminal liability relating to inaccurate tax returns filed by 12 former Dutch Credit Suisse clients between 2005 and 2015.
UBS said the settlement does not constitute an admission of criminal liability.
By Eva Castanedo, Alliance News senior economics reporter
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