ZURICH (Reuters) -UBS might be viewed as being also huge for Switzerland following its requisition of Credit Suisse, previous Swiss Finance Minister Ueli Maurer stated on Saturday, with steps required to lower the threats of the bigger financial institution.
“If you look at the numbers alone and compare UBS with the Swiss economy, it is too big,” Maurer informed paper Tages-Anzeiger “Therefore, the risk must be reduced.”
At around $1.7 trillion, UBS’s annual report is dual the dimension of yearly Swiss financial result, offering the financial institution phenomenal weight for a significant economic situation.
Should the financial institution stop working, there are no regional opponents delegated absorb it, while the price of nationalisation might badly harm public funds, specialists have actually alerted.
Reducing threats was largely the obligation of investors by means of their option of board participants, Maurer stated.
“They must take responsibility, not the taxpayers in the end,” stated Maurer, that left workplace months prior to the last collapse of Credit Suisse in March 2023.
“Legislative measures must also be examined,” stated Maurer, that likewise protected himself after a current legislative record questioned concerning his activities as the Credit Suisse situation aggravated at the end of 2022.
The Swiss federal government in 2015 outlined prepare for harder funding demands for UBS and Switzerland’s 3 various other huge financial institutions in a proposal to make the economic market extra durable after Credit Suisse’s death.
Details of the specific funding demands are yet to arise, however the opportunity that UBS might be made to hold $15 billion to $25 billion in extra funding has actually satisfied resistance from the financial institution.
Maurer stated if the funding demands were too expensive, Swiss financial institutions would certainly no more be affordable and might seem based somewhere else.
“For the Swiss economy with its many international multi-nationals, a large bank is a locational advantage,” he stated. “But risks must be minimized.”
UBS decreased to discuss the meeting. The financial institution’s chief executive officer Sergio Ermotti previously this month informed Migros Magazine that UBS had adequate funding to cover possible issues.
The financial institution sustained a lot of the Swiss federal government’s propositions to boost financial guideline, however they needed to be targetted and proportionate, Ermotti informed the publication.
(Reporting by John RevillEditing by Mark Potter)
