The Strategist

Swiss bank UBS will have to increase reserves by $26bn due to reforms



06/09/2025 - 09:40



Swiss bank UBS Group AG must set aside extra capital of up to $26bn as per the banking reform proposed by the nation's government.



Alex Proimos via flickr
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