FINMA raises requirements for UBS after CS experience
Published: Wednesday, Mar 20th 2024, 13:10
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The Swiss Financial Market Supervisory Authority Finma has significantly increased the requirements for the new big bank UBS. This applies to both capital adequacy and liquidity, said Thomas Hirschi, Head of the Banks division, at the Finma annual media conference in Bern on Tuesday.
The capital requirements for the new big bank would increase significantly by 2030. It is not yet possible to say exactly what these will be. It will depend, for example, on the size and business development of the bank and its systemic importance.
"But it will be a significant capital increase," said Hirschi. The corresponding capital build-up should take place from 2026.
Lessons learned from the CS crisis
With regard to liquidity, Finma has learned the lessons from the CS crisis, Hirschi continued. He did not want to put a figure on the new requirements. However, it can be assumed that the additional liquidity requirements for the merged big bank will be "significantly higher" than before.
In the on-site inspections at UBS planned for the current year, Finma will also cooperate with foreign regulatory authorities, said Hirschi. He emphasized that the planned 40 inspections would mean that a Finma team would be investigating a UBS division almost every week.
Whether it would be sensible to publish the results of the two stress tests planned for UBS this year was not discussed by the Finma managers. There are "advantages and disadvantages" in this regard, Hirschi merely said.
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