UBS Group AG chief executive Sergio Ermotti has sharply criticized the Swiss government's proposal for stricter capital requirements, describing the plan as "extreme" and warning it would inflict a "severe blow" on the country's largest bank.
The comments mark a significant escalation in the ongoing dispute between the lender and domestic regulators over the future of Swiss banking policy.
Ermotti used the remarks to defend the bank's recently announced $3 billion share buyback program, arguing that the proposed regulatory changes would undermine the institution's capacity to return capital to investors.
Ermotti used the remarks to defend the bank's recently announced $3 billion share buyback program, arguing that the proposed regulatory changes would undermine the institution's capacity to return capital to investors.
The CEO's stance directly challenges the Swiss National Bank's (SNB) recent assessment of the sector's resilience, which UBS has previously labeled as misleading.
The friction centers on the SNB's push for higher capital buffers, a move the central bank argues is necessary to ensure the banking sector's preparedness for potential stress scenarios.
UBS, however, contends that the current framework is already robust and that further tightening would be disproportionate, potentially hampering the bank's competitiveness and shareholder returns.