Swiss giant UBS considers shock call to leave Switzerland, sources say

UBS and Proposed Swiss Capital Rules

UBS, Switzerland’s largest bank and its only global bank since acquiring Credit Suisse in 2023, is concerned that proposed Swiss capital rules could make international expansion—particularly in the United States—more costly.

The rules would require UBS to hold more capital against its foreign units. The government’s proposal calls for full coverage with Tier 1 capital, which UBS considers excessive and potentially damaging to its competitiveness. Parliament’s upper house has suggested that 90% coverage would be sufficient.

UBS’s Contingency Planning

Sources say UBS has been preparing contingency plans for at least 18 months. Options under consideration include moving its headquarters or merging with another bank, though there are no active negotiations.

UBS says it wants to remain in Switzerland and has declined to comment on speculation. London was reportedly considered in earlier planning, while New York and Singapore have also been mentioned. The United States is a key growth market for UBS, which received a full US banking licence in March.

Government Rationale and Timeline

The Swiss government says stronger capital requirements are needed to protect the country’s financial system. Following major banking crises, it wants to prevent problems at a foreign unit from endangering UBS’s Swiss operations or the wider economy.

The earliest possible decision on the rules is expected in December, when parliament’s lower house is due to debate them. A referendum period could follow, and the rules would include a seven-year transition.

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