UBS, SNB approves 90% capital requirements

The SNB approves the decision of the Council of States: UBS's foreign subsidiaries will have to be covered 90% with CET1 capital.
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Source: tio.ch
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Frequently Asked Questions
- What has the SNB approved for UBS?
- The SNB approves the decision of the Council of States to increase the capital requirements for UBS. The measure provides that the bank's foreign branches are covered for 90% of their value with first-class core capital, referred to as CET1. The source links the choice to the issue of financial stability and does not indicate other operational effects for customers or companies.
- What percentage had the Federal Council proposed?
- The Federal Council had proposed a coverage of 100% of the value of UBS's foreign subsidiaries with CET1 capital. The Council of States, on the other hand, decided for 90%. Antoine Martin, vice-president of the SNB's directorate-general, called the proposal 90% good, adding that 100% would have been better from a financial stability point of view.
- Who made the decision on the 90% requirement?
- The decision was taken by the Council of States. The SNB approved this choice and Antoine Martin stated that the institution respects Parliament's decisions. The source places the news in Bern and specifies that the parliamentary debate concerned the coverage of UBS's foreign subsidiaries with first-class core capital.