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Swiss Finance Minister Demands Stricter Capital Buffers for UBS

Swiss Finance Minister Karin Keller-Sutter is pushing for UBS to maintain full core capital backing for its foreign subsidiaries. The move aims to ensure systemic financial stability as the bank cements its position as Switzerland’s only global lender following the 2023 acquisition of its former rival, Credit Suisse.

Swiss Finance Minister Demands Stricter Capital Buffers for UBS
Photo: Business Person

Addressing a banking event in Zurich, Keller-Sutter emphasized that requiring robust capital reserves for international operations, particularly those in the United States, is essential for the long-term health of the Swiss financial center. She argued that being well-capitalized serves as a strategic advantage for banks rather than a burden.

While acknowledging that Switzerland may not offer the cinematic thrills of an Indiana Jones film, she positioned the country’s banking sector as a reliable and stable global partner. This push for stricter regulation comes as the government reassesses oversight mechanisms to prevent a recurrence of the liquidity crises that triggered the emergency merger of the nation's two largest banks.

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