UBS(US:UBS) 智通财经网·2025-09-26 11:41Core Viewpoint - The Swiss government has proposed a seven-year transition period for UBS Group AG to meet higher capital requirements, confirming previous guidelines, but this is still a draft and subject to parliamentary approval, potentially not taking effect until 2028 [1][2]. Group 1: Proposed Capital Requirements - The Swiss government suggests that UBS should provide sufficient capital support for its overseas subsidiaries, with a target Common Equity Tier 1 (CET1) ratio of 65% at the law's enactment, increasing by 5 percentage points annually until reaching 100% [1]. - UBS may face an increase in capital requirements by up to $26 billion as a result of the government's proposal, which was formulated after UBS's acquisition of Credit Suisse earlier this year [1]. Group 2: UBS's Response and Market Impact - UBS has strongly criticized the proposed capital requirement increase, arguing it is inconsistent with international norms and does not adequately learn from the Credit Suisse collapse [2]. - The uncertainty surrounding the additional capital UBS needs to hold has pressured its stock price, although UBS's American Depositary Receipts (ADRs) have risen over 37% this year, outperforming the S&P 500 [2]. Group 3: Legislative Process and Timeline - The phased implementation of the capital requirements will begin upon the law's enactment, which is not expected before 2028, and there is a possibility of a public referendum [3]. - UBS is exploring options to mitigate the impact of the capital requirements, including technical measures to optimize its wealth management business and potentially relocating its registration [3].