{"id":108322,"date":"2024-09-29T11:37:49","date_gmt":"2024-09-29T04:37:49","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=108322"},"modified":"2024-09-29T11:37:49","modified_gmt":"2024-09-29T04:37:49","slug":"ubs-chair-warns-against-big-increase-in-capital-requirements-newspaper-reports","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=108322","title":{"rendered":"UBS chair warns against big increase in capital requirements, newspaper reports"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p>ZURICH (Reuters) &#8211; UBS Chair Colm Kelleher warned on Sunday that the Swiss government&#8217;s plans to strengthen capital requirements for big banks could damage the country&#8217;s position as a financial centre.<\/p>\n<p>The government earlier this year laid out plans for tougher capital requirements for UBS and Switzerland&#8217;s three other big banks in a bid to make the financial sector more robust after the crash of Credit Suisse last year.<\/p>\n<p>In an article published in the Swiss newspaper SonntagsBlick, Kelleher said he agreed with most of the 22 recommendations in the government&#8217;s report, except for the proposal for more stringent capital requirements.<\/p>\n<p>&#8220;What I really have a big problem with is the increase in capital requirements. It just doesn&#8217;t make sense,&#8221; he said about the so-called &#8220;too-big-to-fail&#8221; report.<\/p>\n<p>Details of the exact capital requirements are yet to emerge, although Finance Minister Karin Keller-Sutter in April said estimates UBS will require another $15 billion to $25 billion were &#8220;plausible&#8221;.<\/p>\n<p>In a separate estimate, analysts at Autonomous Research said UBS may need to retain an additional $10 billion to $15 billion.<\/p>\n<p>Kelleher declined to comment on figures, but said that excessive capital requirements would damage competitiveness and lead to less favourable prices on banking products for customers.<\/p>\n<p>&#8220;We should focus on more important issues such as liquidity management and, above all, the full resolvability of a bank,&#8221; Kelleher told the newspaper.<\/p>\n<p>Swiss banks contribute to its role as the world&#8217;s top financial centre, with some $2.6 trillion in international assets under management, according to a 2021 Deloitte study. However, competition is rising from Luxembourg and in particular Singapore, which has grown rapidly in recent years.<\/p>\n<p>UBS &#8211; which has a balance sheet double the size of annual Swiss economic output &#8211; would pose dire risks for the Swiss economy if it were to collapse, experts have warned.<\/p>\n<p>Kelleher downplayed the dangers, saying UBS held &#8220;significantly more&#8221; capital than comparable banks, while the bank&#8217;s business model &#8211; based on wealth management and the Swiss domestic market &#8211; meant it was low risk.<\/p>\n<p>UBS remained committed to Switzerland even if Bern demanded a big increase in extra capital, said Kelleher, who has been chair since 2022.<\/p>\n<p>&#8220;Although we are a global bank, the heart of UBS is our Swissness,&#8221; he said, adding there was &#8220;no question&#8221; the lender would quit its home country.<\/p>\n<p>Still he warned if the bank had to raise its capital levels, it would be detrimental for Switzerland.<\/p>\n<p><button class=\"link caas-button readmore-button-finance collapse-button readmore-button-class\" data-ylk=\"elm:readmore;slk:Story continues\"><span class=\"readmoreButtonText\">Story continues<\/span><\/button><\/p>\n<p>&#8220;If politics forces us to massively increase our capital, then Switzerland has decided that it no longer wants to be a relevant international financial centre,&#8221; Kelleher said.<\/p>\n<p>&#8220;I think that cannot be in the country&#8217;s interest.&#8221;<\/p>\n<p>The former Morgan Stanley executive said he was ready to speak with the government on its proposals.<\/p>\n<p>(Reporting by John Revill; Additional reporting by Emma Farge; Editing by Clelia Oziel)<\/p>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/finance.yahoo.com\/news\/ubs-chair-warns-against-big-224120211.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>ZURICH (Reuters) &#8211; UBS Chair Colm Kelleher warned on Sunday that the Swiss government&#8217;s plans to strengthen capital requirements for big banks could damage the country&#8217;s position as a financial &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=108322\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-108322","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/108322","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=108322"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/108322\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=108322"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=108322"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=108322"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}