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UBS Group could face substantially higher capital requirements under the new reforms proposed by the Swiss government, as per its 209 page report on banking stability. The Federal Council has proposed a package of 22 measures for direct implementation to strengthen and further develop the ‘too-big-to-fail’ regime, according to the statement by the Swiss government. As per a government official, the implementation of the relevant order would take place in 2026 at the earliest. The Swiss government also supported giving more powers to its regulator, FINMA, like having more tools to prevent crises, such as a ‘senior managers regime’, rules on bonuses, along with ability to impose fines on the banks. UBS shares declined by 3.9% in yesterday’s trading session.
It’s bonds traded slightly weaker with its 5.125% Perp at 94.7 cents on the dollar, yielding 7.7% to call.
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