Updated
Updated · Bloomberg · Jun 25
IMF Backs Swiss Plan Requiring UBS to Fully Capitalize Foreign Units With CET1
Updated
Updated · Bloomberg · Jun 25

IMF Backs Swiss Plan Requiring UBS to Fully Capitalize Foreign Units With CET1

3 articles · Updated · Bloomberg · Jun 25

Summary

  • James Walsh, the IMF’s mission chief for Switzerland, said the fund “strongly” supports Bern’s proposal to make UBS fully back its foreign units with high-quality CET1 capital at the parent bank.
  • The endorsement targets Switzerland’s plan to force UBS to hold significantly more capital, tightening safeguards around the lender’s overseas operations.
  • IMF backing adds weight to the Swiss government’s push for tougher bank resilience rules as UBS faces stricter post-Credit Suisse oversight.

Insights

Could the plan to make UBS safer inadvertently push the financial giant to leave Switzerland entirely?
Will Switzerland's government risk its economy for financial stability in this high-stakes showdown with its largest bank?
UBS claims higher capital will cripple its value. Why do academics argue the opposite could be true?