UBS’s head of finance, Todd Tuckner, expressed strong dissatisfaction on Wednesday with proposed Swiss capital regulation reforms.
Tuckner warned that these draft rules could force the country’s remaining large banks to boost core capital by as much as CHF 26 billion.
Disappointed, But Strategic
Speaking at a financial conference in Berlin, Tuckner described his reaction as “disappointed.”
“Naturally, as to capital, we’re disappointed,” he said.
He emphasized that UBS is evaluating all avenues to challenge the so-called “extreme” capital requirements.
“We are looking at every possible option to potentially mitigate the imposition of these extreme capital measures,” he added.
Proactive Regulatory Dialogue
Tuckner confirmed that UBS will participate in political consultations and regulatory discussions.
He hopes this engagement will help shape capital rules to reflect a more proportionate outcome.
Anticipated Implementation Window
If adopted, the tougher capital deductions – especially regarding deferred tax assets and software holdings – would likely be phased in over several years.
Tuckner described a transition period of at least four years as “reasonable.”
Long-Term Aspirations Under Review
Despite these regulatory pressures, UBS reaffirmed its targets for capital returns in 2025 and set goals for 2026.
Tuckner noted that the bank’s medium- and long-term ambitions remain intact.
He cautioned, however, that clarity on timeline and final rule text is needed before UBS can finalize its strategy.
“In terms of longer‑term ambitions that we’ve talked about in the past, we have to see what the timeline ultimately is and have more visibility around the rules.”
Broader Implications for Switzerland’s Banking Sector
The Swiss government’s push for increased capital buffers follows global trends in tightening bank resilience after past crises.
However, Tuckner’s remarks underscore tension between applying rigorous standards and preserving competitiveness.
As Switzerland’s last remaining major universal bank, UBS faces a balancing act: complying with regulation while maintaining returns and market position.
The outcome of this rule‑making and the bank’s strategies to counterbalance additional capital needs will be watched closely by investors and regulators alike.