ZURICH, Switzerland — Swiss lawmakers on Monday decided to review alternative options for proposed new capital rules for UBS, putting off a swift decision on the matter and extending a phase of regulatory uncertainty for the bank.
The Economic Affairs and Taxation Committee of the upper house of parliament said it would continue debating the capital bill in August, likely meaning it will not face a vote by the full upper chamber before September.
Under debate are the government’s proposal to make UBS fully back its foreign units with Common Equity Tier 1 capital, and a compromise pitch that could let it partly use less expensive Additional Tier 1 capital instead.
Following hearings with UBS bosses and top officials, lawmakers did not reach a conclusion as committee members sought further clarification on the divisive issue.
“Given the significance of the upcoming decision, the committee wants to discuss various versions and alternatives to the Federal Council’s proposal in depth and with sufficient time,” the committee said, referring to the government’s bill.
Parliament still wants to decide quickly on the UBS regulations, lawmakers said.
Led by Finance Minister Karin Keller-Sutter, Switzerland is tightening regulations after the collapse of Credit Suisse in 2023 left UBS as the country’s sole global bank.
UBS — which has criticized the regulatory plans as “extreme” — said last week its share buyback plans for 2026 depend on getting more clarity on the banking rules, which could mean it must find around $20 billion in additional core capital.
While the committee that kicked off debate on the banking bill is widely seen as sympathetic to UBS’s argument that costly regulation will hurt its business and the economy, it could face a tougher reception on the floor of parliament.
