Zurich (Reuters) – The most important bank lobby of Switzerland said on Friday that the Swiss economy could have serious consequences if UBS would be driven away, which intensify warnings about the risks to touch the bank with excessive regulations.
Switzerland makes stricter bank rules to make the sector more robust after the collapse of 2023 of Credit Suisse. UBS acquired his old rival and gave concern about the potential risk for the economy that the enlarged bank set.
UBS says it has no plans to leave, although people who are familiar with his thinking say that there is concern that it can become a takeover goal if it is unnecessary, and that it has considered all scenarios, including moving the head office.
The acquisition of the Suisse credit made UBS the only large international bank that was left in Switzerland, and the legal back and forth about how another crisis is to prevent the amount of extra capital that the bank should maintain.
UBS says that it is well capitalized and that excessive capital requirements would be at the disadvantage for rivals, which undermines the competitiveness of the Swiss financial sector.
The Swiss Bankers Association said last month that as new regulations were too heavy that a UBS output could encourage.
In a report with the benefits that Banking has brought for the Swiss economy, the SBA said that the country had to retain an internationally competing financial sector – and tackled the costs of a potential UBS fee.
“A possible relocation of the remaining large bank could … serious consequences in the medium term,” said the SBA.
“A strategy that no longer focuses on global business activities, but rather on a predominantly regulatory and economic orientation on the EU, could significantly disadvantage the activities of the banking sector, especially in other, growing regions of the world, without related benefits.”
A decrease in the financial sector of Switzerland could damage the economic output, jobs, public finances and limit access to capital for companies, the SBA said.
The government of Switzerland will present its proposals for new capital rules at the beginning of June.
(Reporting by Dave Graham and Oliver Hirt; Edit by Barbara Lewis)