Swiss upper house postpones vote on UBS rules until next week

The government argues stricter rules are necessary to protect taxpayers against the risk of another banking meltdown.

Its full suite of proposals for the banking overhaul would require UBS to hold an extra $20 billion in Common Equity Tier 1 capital. UBS describes the government's plan as excessive and says it would undermine its international competitiveness.

The higher capital demands hinge chiefly on making UBS back its foreign units 100% with CET1, though last month an upper house committee passed a compromise that could let the bank use $13 billion in so-called Additional Tier 1 capital instead.

Switzerland's upper house of parliament on Thursday postponed until next week a vote on new banking rules being drawn up for UBS following the 2023 collapse of Credit Suisse.

Switzerland's governing Federal Council is pushing to tighten Swiss banking legislation in response to the demise of Credit Suisse, which UBS subsequently acquired.

The upper house had been expected to vote on Thursday on the new rules, but the debate went on for so long that the chamber's president, Stefan Engler, said the session would be interrupted and brought to a conclusion next Wednesday.