Bank lobby warns excess regulation could make UBS mull leaving Switzerland

Zurich: If Switzerland draws up regulation for its systemically important banks that is too onerous, it could make UBS consider leaving the country, the head of the Swiss Bankers Association (SBA) was quoted as saying on Tuesday.

Switzerland is in the process of crafting stricter rules for the banking sector following the 2023 collapse of Credit Suisse, which was subsequently acquired by its old rival UBS.

At the heart of that debate is how much additional capital UBS must hold to prevent the risk of another banking crisis, and SBA Chief Executive Roman Studer said that if the demands on the bank went too far, it could have consequences.

"Demands for maximum stability could also mean that UBS would need to consider scenarios such as moving away in the interests of its market viability," he told Swiss newspaper Tages-Anzeiger in an interview.

"There would also be a risk of a takeover," he added.

UBS has itself warned that excessive capital demands could threaten the competitiveness of the Swiss banking sector.

The leadership of UBS has repeatedly underlined that Switzerland is very important to the bank.

UBS did not immediately respond to a request for comment.