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ZURICH (Reuters) -Capital necessities set for UBS below new banking laws needs to be “proportionate”, as Switzerland makes an attempt to strike a stability between monetary sector competitiveness and defending taxpayers, Finance Minister Karin Keller-Sutter stated.
Swiss authorities are weighing up easy methods to overhaul banking guidelines in a bid to stop a repeat of the 2023 collapse of Credit score Suisse, which led to its takeover by its previous rival UBS.
In an interview broadcast on Sunday, Keller-Sutter stated UBS was now a really giant financial institution in relation to the dimensions of the Swiss financial system, making a “particular state of affairs”.
“And so the suitable protecting and preventative measures have to be taken; meaning liquidity, meaning fairness capital,” she advised nationwide broadcaster SRF (NS:).
She acknowledged UBS already confronted sure stricter capital necessities, together with below Basel III guidelines efficient from January that not all international locations are implementing identically.
In April, Keller-Sutter stated estimates that UBS must maintain one other $15 billion to $25 billion in capital below her authorities’s proposals had been “believable”.
Requested within the interview whether or not the $25 billion determine was nonetheless legitimate, Keller-Sutter stated she couldn’t say. Ultimately, what counted was the entire bundle of measures, she famous.
“This have to be checked out in a proportionate, focused manner,” she stated, arguing Switzerland should discover a compromise between having a aggressive monetary sector and defending taxpayers.
Addressing an upcoming parliamentary report into how authorities dealt with the Credit score Suisse disaster, Keller-Sutter harassed that the principle blame lay with the financial institution’s administration.
Requested concerning the danger of incoming U.S. President Donald Trump imposing hefty commerce tariffs on different international locations, Keller-Sutter stated it was too early to invest.
“However after all if such tariffs did come about, it will be poison for world commerce,” she stated.
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