Swiss lawmakers are considering a motion to grant the Federal Council authority to set capital requirements for UBS by decree. This move would bypass the standard parliamentary approval process, allowing the executive branch to regulate the bank's capital buffers directly.
Government estimates suggest the additional Common Equity Tier 1 (CET1) capital requirement for UBS could reach $20 billion to $22 billion. The bank has publicly stated that such requirements are excessive and could hinder its competitiveness against global peers.
In late August 2026, the upper-house economic affairs committee approved a compromise proposal by a 10-2 vote. This plan suggests a 50/50 split between CET1 capital and Additional Tier 1 (AT1) debt, which is a less expensive form of capital.
The Council of States is scheduled to debate the capital bill in mid-September 2026. A final decision is expected between late 2026 and early 2027, depending on the progress of negotiations between the two chambers of the Swiss parliament.
