Bern has decided to increase capital requirements for the larger systemic banks (ZKB, UBS, PF, and Raiffaisen) in blow to the Swiss financial sector.

IMO a bad idea that renders our banks less competitive. The disappearance of CS already dealt a big blow to our economy as multinational companies no longer have a choice between two local banks for their large international operations. UBS could very well just move their HQs elsewhere to face lower requirements, and we'd lose influence over the last remaining large bank without really reducing our exposure to its risks.

by Cute_Employer9718

7 comments

  1. Understand the need for competitiveness, but at the same time, aren’t those capital requirements being mandated in order to prevent another CS situation in the future? Isn’t the credibility and reputation of the whole country at large at play here?

  2. UBS‘ share price didn‘t seem to care too much about a proclaimed lower competitiveness

  3. Big banks crying about sensible measures to ensure they don’t screw us all over? I’m shocked, I tell you, shocked!!

  4. As I understand it, this factually only affects UBS to a significant degree. They want to stop the concept of double leveraging foreign subsidiaries. The other changes seem minor.

  5. It is a good thing. We don‘t wanna bail idiotic CEO‘s who finance drug lords and dictators out.

    If the same people who started those experiments we wouldn‘t be here were we are but in the end this is the reason we can‘t have nice things.

  6. Insurance companies seem to be the competitive, stable, and high return on investment part of the Swiss economy these days

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