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The UBS chairman has criticized the proposed reforms in the bank capital rules in Switzerland, called the steps “extreme” and said that they would force the NDD donor to hold 50 percent capital.
On Thursday, Kelhir said that new rules proposed by the Swiss government and financial regulators would significantly impose the capital requirements of the NDDist and could damage the ability to compete internationally.
“Finma and Swiss National Bank determine the requirements for additional capital, which will increase by 50 percent in capital requirements than today,” he said UBSIts annual general meeting.
“We are strongly opposed to the need for this extreme additional capital, UBS is already subject to some of the strict capital needs in the world.”
The comments identify the latest signs of excitement UBS and Swiss political and regulatory establishments Regarding the proposed reforms, before the draft law related to the new rules presented to the lawmakers by June.
Officials are pressing UBS to fully bring back its foreign auxiliary agencies – a step that will increase its capital requirements up to $ 25 billion – to strengthen the country’s financial sector stability to protect the country’s financial sector from the death of the credit ease and the rescue of the extended ND.
UBS – which Its rivals have accepted the credit swice Switzerland is the only bank in the list of watchdogs in a state-sponsored rescue-around the world in 2021.
Banks and officials have been on the loggerhead for the first time last year, strongly against UBS capital reform and argued that these changes would damage their international competition.
Other countries led by the United States are seeking to roll the reforms introduced by global regulators in the wake of the financial crisis. UK Said it would be suspended The introduction of new capital rules for British banks within a year.
On Thursday, Kelh said that the change in UBS had a so-called core equity tear ratio of 1-a key measure of the strength-“It would be 50 percent higher than our international competitors”.
“Let me crystal clean on this topic: UBS’s long -term success is a great risk of excess control in Switzerland,” he said. “For our shareholders, it is our basic faithful responsibility to reduce this risk.”
He also added: “UBS has already been interrupted by the existing regulator ‘Swiss Finnis’. Adding another ‘Swiss finish’ to the top – other financial centers are simplifying regulations – UBS, Swiss Financial Center and widespread economy will damage.”
Separately, Kelhir said that despite the uncertainties around the capital reform, UBS will stick to its plans for $ 3 billion bayback this year.
The bank announced in February that it would re -buy $ 1 billion in shares in the first half of 2021 and increase the additional $ 2 billion in the second half of the year, but warned that the country’s bank could reform the BiBack plan by renovating the capital regime.
“In the current capital system, we are committed to giving back capital to our shareholders due to any significant, immediate change in the current capital system.”
