Swiss Upper House Delays Vote on UBS Banking Rules to Next Week

Switzerland's upper house of parliament has postponed its vote on new banking regulations for UBS until next week, following an extended debate on Thursday. The chamber's president, Stefan Engler, interrupted the session and scheduled its conclusion for next Wednesday.

The proposed rules are part of Switzerland's response to the 2023 collapse of Credit Suisse, which was subsequently acquired by UBS. The governing Federal Council is seeking to tighten banking legislation to better protect taxpayers from future banking crises.

The government's full set of proposals would require UBS to hold an additional $20 billion in Common Equity Tier 1 capital. UBS has described the plan as excessive and warned it could harm its international competitiveness.

The higher capital demands are primarily based on requiring UBS to fully back its foreign units with CET1 capital. However, last month an upper house committee passed a compromise that would allow the bank to use $13 billion in Additional Tier 1 capital instead.