SNB official backs tougher capital rules for UBS under too-big-to-fail
At an event in Basel, SNB board member Martin urged Switzerland to strengthen too-big-to-fail rules given the Swiss banking sector’s growing concentration, especially UBS’s market footprint. The government wants UBS to back foreign subsidiaries with hard CET1 capital to protect taxpayers, but UBS calls the proposal extreme, saying it would require about $20 billion more CET1. Lawmakers are set to seek a compromise after missing one earlier.