Marcel Rohner Warns Swiss Regulators on Capital Rules

Addressing the industry at a Banker’s Day event in St Gallen, Rohner argued that while client protection and system stability remain essential, they must be balanced against the necessity of maintaining low barriers to entry and alignment with international norms. The outgoing chair, who led UBS during the 2008 financial crisis, emphasized that successful regulation requires a careful weighing of these competing interests rather than an singular focus on defensive measures.

The warning highlights the ongoing friction between the Swiss government and UBS, the nation's sole remaining universal bank. Following the 2023 emergency acquisition of Credit Suisse, authorities in Berne have sought to impose higher capital requirements to mitigate the risks of a "too big to fail" entity. While the government initially pushed for 100 percent Common Equity Tier 1 capital backing for foreign subsidiaries, recent legislative proposals have softened to 50 percent. Despite this, UBS remains under pressure to hold billions more in reserves, a requirement that could reshape the bank's operational flexibility. As Rohner prepares to hand the association's chairmanship to EFG International CEO Giorgio Pradelli, the debate over whether Switzerland's regulatory environment can remain both robust and competitive continues to dominate the domestic financial agenda.