The economic affairs and taxation committee of the upper house approved the move by a 10-to-two margin. This decision serves as a direct pushback against the government’s plan to force the bank to hold roughly $20 billion in additional high-quality capital. The government originally sought these measures to insulate taxpayers following the emergency takeover of Credit Suisse in 2023.

UBS has consistently maintained that the government’s proposal would stifle its global competitiveness and harm the domestic banking sector. Erich Ettlin, the committee president, framed the adjustment as a pragmatic choice for the nation rather than a win for the bank. Despite this committee approval, the proposal faces a lengthy legislative path. It must still navigate both houses of parliament, with final regulations likely delayed until 2027.