What are the estimated costs for UBS related to the government project?

The Federal Council hopes that systemic banks will fully cover foreign branches with equity capital to avoid a crisis similar to that of Credit Suisse in 2023. This measure involves an estimated outlay of CHF 20 billion for UBS, while the preparatory committee proposed a compromise solution with 50% CET1 capital and 50% AT1 Additional Tier 1 bonds.

What is the Preparatory Commission's compromise proposal?

The preparatory committee judged the Government's solution too burdensome for UBS and presented a compromise that provides for 50% coverage of foreign branches with CET1 first class core capital and 50% with AT1 Additional Tier 1 bonds. Currently, the legislation instead provides for a rule of 45% of core capital combined with 17% in AT1 bonds. Under the proposal, UBS is expected to constitute CHF 13 billion of additional AT1 capital.

What are the economic impacts on the Canton of Ticino highlighted in the debate?

Senator Fabio Regazzi highlighted how the insurance and banking sector contributes 7% of Ticino's GDP and generates more than 10% of the taxes paid to the canton of Ticino. For this reason, according to the senator, a balanced regulatory framework is essential to promote the bank's resilience without penalising its commercial competitiveness and avoiding negative repercussions on access to credit for businesses and families.

Lex UBS: Council of States postpones decision (cross-border guide)

Di Marco Ferrari · Published on 18 September 2026

Federal Palace in Bern during the debate on systemic banks

Debate in the Council of States on the systemic banking project. Intervention by Karin Keller-Sutter scheduled for Wednesday and estimated cost of 20 billion.

Context

In breve

Council of States: debate on systemic banks project
Intervention by Karin Keller-Sutter scheduled for Wednesday
Objective: cover foreign subsidiaries with own capital
Estimated cost for UBS equal to 20 billion francs

Key facts

Institution: Council of States
Minister: Karin Keller-Sutter
Government cost: 20 billion francs
Proposed commission coverage: 50% CET1 and 50% AT1
Current rule: 45% core capital and 17% AT1 bonds
Ticino contribution to GDP: 7%
Ticino tax contribution: 10%
Additional AT1 capital for UBS: 13 billion francs

More than three hours of debate this morning in the Council of States were not enough to finish examining the government project aimed at strengthening systemic banks, particularly UBS, in case of difficulties. The debate will continue next Wednesday with the position of the finance minister, Karin Keller-Sutter. The Federal Council hopes that systemic banks will fully cover their foreign subsidiaries with own capital, in order to avoid a repeat of a crisis similar to that of Credit Suisse in 2023. This measure should entail an estimated outlay of 20 billion francs for UBS.

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Operational details

A balance between stability and competitiveness

During today's session in the chamber, several speakers advocated for the solution put forward by the parliamentary commission. Tiana Moser of the Zurich Socialist Party described the measure as a balanced tightening and a typical Swiss compromise, stressing that the financial centre must certainly increase its resilience to crises, but that at the same time a major bank must be able to maintain its competitiveness on international markets. Similar considerations were expressed by Ticino centre senator Fabio Regazzi, who acted both as a representative of Ticino and as president of the Swiss Union of Arts and Trades USAM. For the Locarno entrepreneur, an excessive regulatory tightening such as that desired by the Federal Council risks weighing excessively on the financial centre, with the concrete danger that UBS would pass these costs on to local companies that need financing and credit on sustainable terms, as well as to households.

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Key points

Future scenarios and banking risk management

The parliamentary debate in the Council of States represents a crucial step in the legislative process aimed at redefining capital requirements for systemically important institutions in Switzerland. With the continuation of work scheduled for next week and the expected intervention of Finance Minister Karin Keller-Swiss, Parliament is called upon to resolve the issues concerning the ratio between primary own funds and convertible debt instruments such as AT1 bonds. Economic operators, businesses, and Swiss citizens are closely monitoring the evolution of the regulatory framework, assessing the repercussions that future decisions by Bern could have on access to credit and the costs of financial services provided by the major Swiss banks. The definition of rigorous but sustainable rules constitutes the fundamental pillar to prevent systemic turmoil and safeguard the country's economic stability.

Procedures and financial planning tools

For professionals, businesses, and residents wishing to monitor the evolution of the labor market, operating costs, and wealth management in Switzerland, it is essential to rely on updated analysis and calculation tools. Personal and corporate financial planning requires a careful assessment of macroeconomic factors, including interest rates, taxation, and income trends within the national economic context. To delve deeper into your personal financial situation, calculate your net income, or analyze the impact of taxes on your budget, access the salary and tax calculator.

Source: tio.ch

Frequently Asked Questions

What are the estimated costs for UBS related to the government project?: The Federal Council hopes that systemic banks will fully cover foreign branches with equity capital to avoid a crisis similar to that of Credit Suisse in 2023. This measure involves an estimated outlay of CHF 20 billion for UBS, while the preparatory committee proposed a compromise solution with 50% CET1 capital and 50% AT1 Additional Tier 1 bonds.
What is the Preparatory Commission's compromise proposal?: The preparatory committee judged the Government's solution too burdensome for UBS and presented a compromise that provides for 50% coverage of foreign branches with CET1 first class core capital and 50% with AT1 Additional Tier 1 bonds. Currently, the legislation instead provides for a rule of 45% of core capital combined with 17% in AT1 bonds. Under the proposal, UBS is expected to constitute CHF 13 billion of additional AT1 capital.
What are the economic impacts on the Canton of Ticino highlighted in the debate?: Senator Fabio Regazzi highlighted how the insurance and banking sector contributes 7% of Ticino's GDP and generates more than 10% of the taxes paid to the canton of Ticino. For this reason, according to the senator, a balanced regulatory framework is essential to promote the bank's resilience without penalising its commercial competitiveness and avoiding negative repercussions on access to credit for businesses and families.