UBS has expressed openness to the proposals of the Parliamentary Investigation Commission to strengthen the financial center. However, the bank holds a different view on the issue of equity capital.
UBS takes note of the report by the Parliamentary Investigation Commission (PUK) on the collapse of Credit Suisse (CS) in March 2023, according to a statement issued by UBS on Friday. The report confirms UBS's own opinion that the collapse of CS was the result of years of strategic missteps, mismanagement, and reliance on substantial regulatory concessions.
The bank further stated that it supports «most» of the proposals aimed at strengthening the resilience of the financial sector. However, any adjustments to regulatory requirements must be «targeted, proportional, and internationally coordinated.»
Balancing Stability and Costs
UBS emphasized that it is already required to hold approximately $20 billion in additional capital due to the acquisition of CS. The bank noted that financial stability must be balanced with the economic costs incurred.
«UBS has consistently implemented the Too-Big-to-Fail framework from the outset without regulatory concessions and has taken significant measures to ensure the bank's resolvability,» the statement continued. Thanks to its sustainably successful business model, UBS was able to be part of the solution in March 2023 by rescuing CS.
