The Swiss government plans to relax certain capital requirements for UBS.

The media cited three unnamed sources who reported that the Swiss government is planning to relax some elements of the banking regulatory scheme. Under the original plan, UBS may have to raise an additional $24 billion. The report states that the related regulatory provisions involve the valuation of deferred tax assets, software, and other items, which account for approximately $11 billion of the total additional capital that UBS may need to hold. The Swiss government is expected to still adhere to its proposal to require UBS to fully capitalize its overseas subsidiaries onshore.