Insider: Swiss parliamentarians plan to introduce a new compromise proposal on UBS capital rules.

According to media reports citing sources, Swiss lawmakers are considering a new proposal to loosen capital requirements for UBS. If implemented, this scheme would significantly reduce the tens of billions of dollars in compliance pressure that the government's draft legislation would impose on the bank. The Swiss government submitted a draft bill to parliament in April of this year, proposing stricter regulatory requirements to prevent a repeat of the Swiss credit crisis. The draft requires UBS to provide full capital support to all of its foreign institutions with core capital. UBS, which acquired Swiss Credit after it collapsed in 2023, is currently the only global bank in Switzerland. The bank previously criticized the regulatory draft for being "too stringent." Four sources familiar with the matter revealed that the new compromise proposal would lower the core capital support ratio for UBS's overseas subsidiaries to 70% or 80%, instead of the government's draft requirement of 100%. Discussions are still in the confidential stage, and the sources mentioned above requested anonymity.