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Alex Proimos via flickr
This figure surpasses earlier projections and could worsen the relationship between the bank and the government, according to Bloomberg. Previously, the agency wrote that UBS is contemplating relocating its headquarters from Switzerland if the authorities in the country implement the reform, which the bank views as an 'overreaction' to Credit Suisse's failure.
As per the draft reform released on 6 June, the major expense for UBS is a suggestion to raise reserve requirements for banks involved in international operations. Should the reform be approved, banks would need to maintain domestic reserves that are equivalent to 100 percent of the value of foreign assets, instead of the current 60 percent.
Government estimates indicate that UBS would need to raise its reserves by $23bn for this item alone.
The Swiss authorities defend these proposals by stating that boosting reserves will enhance UBS's flexibility and resilience during a crisis.
source: bloomberg.com
As per the draft reform released on 6 June, the major expense for UBS is a suggestion to raise reserve requirements for banks involved in international operations. Should the reform be approved, banks would need to maintain domestic reserves that are equivalent to 100 percent of the value of foreign assets, instead of the current 60 percent.
Government estimates indicate that UBS would need to raise its reserves by $23bn for this item alone.
The Swiss authorities defend these proposals by stating that boosting reserves will enhance UBS's flexibility and resilience during a crisis.
source: bloomberg.com
