Swiss banking plan leaves ‘relieved’ UBS out of the firing line

The measures were not intended to be a major shake-up, but a series of steps aimed at putting more safeguards in place to reduce risk in the banking sector. — Reuters

UBS could take years to feel the bite of new regulations after the Swiss government set out plans aimed at keeping the “monster bank” in line that were light on detail and heralded a tortuous political process to enshrine them in law.

Shares in the Zurich-based lender took a knock on Wednesday after the finance ministry said its “too big to fail” recommendations envisaged tougher capital requirements for UBS and other systemically important banks following the rescue of its stricken rival Credit Suisse in 2023.But the government left open the precise impact it expected from the plan, and analysts said there was little likely to cause UBS great alarm in the pledges to strengthen the market watchdog Finma, monitor excessive pay and improve backstops.