Mirror Review
September 28, 2026
The UBS Switzerland exit discussion follows Switzerland’s proposed changes to capital requirements for UBS’s foreign subsidiaries. On September 23, 2026, the Council of States backed a rule requiring UBS to cover 90% of its foreign subsidiaries with Common Equity Tier 1 (CET1) capital. The 90% proposal passed 29-16, while the broader bill passed 33-10 and now moves to the National Council.
UBS has not announced a relocation of its Swiss headquarters or a change in its legal domicile. UBS has not announced a Switzerland exit, and the current development concerns the parliamentary process over new Swiss capital requirements.
What Is the UBS Switzerland Exit Debate About?
The UBS Switzerland exit debate is tied to proposed changes in Swiss banking rules after the 2023 Credit Suisse collapse. UBS acquired Credit Suisse during the bank’s 2023 crisis. Switzerland then began reviewing its framework and capital rules for systemically important banks.
The proposed Swiss capital requirements would increase the amount of high-quality capital UBS must hold against its foreign subsidiaries. The proposed UBS capital requirements remain part of the legislative process and do not require UBS to leave Switzerland.
Why Is UBS Facing Higher Capital Requirements in Switzerland?
The proposed UBS capital requirements form part of Switzerland’s review of rules for systemically important banks. The Federal Council originally proposed requiring 100% CET1 backing for relevant UBS foreign subsidiaries.
The Council of States rejected the 100% option by 23-22 and instead approved a 90% CET1 requirement. The Swiss National Bank has supported stronger capital requirements for UBS.
What Is the UBS 90% CET1 Capital Requirement for Foreign Subsidiaries?
The UBS 90% CET1 proposal would require UBS foreign subsidiaries covered by the legislation to be backed by 90% Common Equity Tier 1 capital. The remaining 10% of the UBS foreign subsidiary capital requirement could be covered by other permitted forms of capital under the Council of States version.
Common Equity Tier 1 is the highest-quality form of bank capital and primarily consists of common equity and retained earnings. Additional Tier 1 (AT1) instruments can also provide loss-absorbing capital and may convert into equity under specified conditions.
Before the Council of States vote, a parliamentary committee had proposed allowing 50% CET1 and up to 50% AT1. UBS CEO Sergio Ermotti supported that alternative rather than the 90% CET1 proposal.
How Much Additional Capital Would UBS Need Under the 90% CET1 Rule?
UBS estimates that the 90% requirement would require about $16 billion in additional CET1 capital at UBS AG if the proposal is implemented. UBS has also disclosed around $15 billion of CET1 capital already required under existing rules following its Credit Suisse acquisition.
UBS has separately estimated that ordinance-level measures would require about $2 billion more CET1 capital at UBS AG. The $16 billion, $15 billion, and $2 billion figures relate to different regulatory measures and should not be treated as one single new capital requirement.
How Did the Credit Suisse Collapse Lead to New UBS Capital Rules?
The Credit Suisse collapse in 2023 led Switzerland to review its framework for systemically important banks. UBS completed its acquisition of Credit Suisse during the bank’s 2023 crisis.
The proposed Swiss capital legislation includes measures affecting how UBS must capitalize its foreign subsidiaries. The Council of States has completed its part of the debate, with the bill moving to the National Council.
Is UBS Leaving Switzerland?
UBS is not currently leaving Switzerland. UBS has not announced a relocation of its Swiss headquarters, UBS relocation, or UBS redomiciliation.
UBS Chairman Colm Kelleher said UBS’s main aim is to remain in Switzerland, stating, “Our number one aim is to have a Swiss compromise that allows us to stay in Switzerland.” Kelleher also said UBS would have to reconsider its position if the bank could no longer compete under the new rules.
Swiss Finance Minister Karin Keller-Sutter said on September 26 that UBS “certainly does not have to leave Switzerland” because of the new requirements. Keller-Sutter also said that leaving Switzerland would involve higher costs and legal complexity.
UBS’s current situation remains part of the Swiss parliamentary process on new capital requirements. The Council of States approved the 90% CET1 proposal on September 23, while the legislation still has to proceed to the National Council.
Are Foreign Banks Interested in a UBS Merger?
UBS merger interest was reported on September 27, with several foreign banks reportedly expressing interest in a possible merger or combination with UBS. The report said at least eight banks had signalled interest. UBS has not confirmed a merger agreement or transaction.
The reported foreign-bank interest in a possible UBS transaction remains separate from the Swiss capital legislation. No cross-border bank merger involving UBS has been announced.
What Happens Next to the UBS Capital Rules in Switzerland?
The proposed UBS 90% CET1 requirement now moves to Switzerland’s National Council for further consideration. The final Swiss capital requirements for UBS will depend on the remaining parliamentary process and the legislation ultimately approved.
For now, the UBS Switzerland exit remains unconfirmed. Switzerland is continuing its legislative process on higher capital requirements for UBS and its foreign subsidiaries.
Gurushanth S Jatti
