In reviewing the Credit Suisse crisis, the SBA criticized the Federal Council’s plans to massively tighten capital requirements for foreign subsidiaries. The problem, it argued, had not been capital requirements that were too low, but rather extensive exemptions that the financial regulator Finma had granted to individual institutions.

«The targeted lesson, therefore, is to exclude such exemptions in the future. Instead, the Federal Council wants to massively increase capital requirements for foreign subsidiaries, even though this is neither provided for in international standards nor practiced in competing financial centers such as the U.S. or Europe,» the association wrote in its statement on Friday.

A Competitive Disadvantage for Domestic Players

According to the SBA, the Federal Council’s plans would make international business conducted out of Switzerland significantly less attractive. This business is central to the Swiss financial center: around half of the 9,3 trillion francs in assets managed in Switzerland comes from foreign clients. The notion that the additional costs could be passed on to foreign clients without consequences is unrealistic. In the end, entrepreneurs, customers, and clients in Switzerland would bear the cost—through more expensive loans and services as well as a weakening of competitiveness.

Need for Economic Impact Assessment

The SBA is therefore calling for proportionate, internationally coordinated solutions. A comprehensive economic impact assessment is needed before extreme measures are decided. The Federal Council has defined regulatory relief as an economic policy objective, the SBA emphasized, and this must also be reflected in banking regulation. Finance and industry are inseparably linked, it added, while pledging its constructive involvement in the process going forward.

UBS: Lessons from the CS Collapse Insufficiently Considered

UBS stated: «We take note of the documents published today by the Swiss government and are currently reviewing the information they contain.»

As the combined bank has already communicated, it supports most of the proposals presented by the Federal Council on June 6, 2025—provided they are implemented in a «targeted, proportionate, and internationally aligned» manner.

Not Aligned with International Standards

UBS, however, firmly rejects the proposed increase in capital requirements, describing it as «extreme and not aligned with international standards.» Moreover, it argued that the lessons from the collapse of Credit Suisse had not been sufficiently taken into account.

According to UBS, the current proposals would mean that, in addition to the USD 18 billion the bank is already required to hold as a result of acquiring Credit Suisse, a further USD 24 billion in CET1 capital would be added: «The additional capital, totaling USD 42 billion, would result in a CET1 ratio of around 19 percent for UBS Group AG. This means that the de facto minimum CET1 ratio requirements for UBS would be at least 50 percent above the average of global systemically important banks,» the bank wrote.