A decision by Swiss lawmakers to defy calls by UBS and big <a s most visible institutions after the 2023 collapse of Credit Suisse.
Wednesday’s upper house vote in favour of increasing the amount of capital Zurich-based UBS, which has a bigger balance sheet than the Swiss economy, must hold to back its foreign units went further than many political analysts had expected.
“People are thoroughly fed up. It wasn’t a vote of conviction, it was about fear of their own voters,” said Cedric Wermuth, co-leader of Switzerland’s Social Democrats.
Following two major banking crises within two decades, the vote demonstrated that public pressure had reached a level where parliament could no longer ignore the demand for more stringent regulations, he told Reuters.
Most upper house lawmakers from parties across the centre, centre-right, and right joined left-wing politicians in voting to require UBS to back its foreign subsidiaries with 90% Common Equity Tier 1 capital, opting against a more moderate plan that would have been less costly for the bank.
Speaking in support, Centre party lawmaker Pirmin Bischof said Credit Suisse’s downfall made it vital that Switzerland try to ensure it could never happen again.
The vote followed a lengthy consultation process in which Swiss cantons and financial centres, raising concerns about Switzerland’s competitiveness.
A Swiss poll published in June found 79% of respondents clearly or somewhat backed tougher capital requirements, even if it meant UBS paying lower dividends or having to accept less growth. Just 9% took the opposite view.
Jakob Tanner, a history professor at the University of Zurich, said scepticism had been fuelled by the billions of dollars in bonuses paid out by Credit Suisse between 2010 and 2022 even as it racked up the losses that eventually sank it.
A recent study published by the Swiss Bankers Association showed that while 53% of the population took a positive view of banks in 2025, this was down from 75% in 2021.
Although the Swiss lower house must still debate the capital plan drawn up by Finance Minister Karin Keller-Sutter in response to the demise of Credit Suisse, many analysts view it as a bigger hurdle for UBS, which bought its historic rival.
UBS, whose role in stabilising Switzerland’s financial sector by acquiring Credit Suisse is often acknowledged by lawmakers, declined to comment. After the vote, it said the decision disregarded serious concerns expressed by business representatives, employee associations and most Swiss cantons.
