UBS chief considers proposed Swiss capital rule compromise bearable
UBS CEO Sergio Ermotti described a Swiss proposal allowing AT1 bonds to meet new capital rules as "bearable" during a recent interview.
UBS Chief Executive Officer Sergio Ermotti stated that a regulatory proposal allowing the lender to utilize Additional Tier 1 (AT1) debt instruments to satisfy pending capital requirements would be "bearable."
Speaking in an interview with Swiss newspaper Neue Zuercher Zeitung, Ermotti addressed ongoing deliberations among lawmakers regarding heightened capital mandates following the bank's emergency acquisition of Credit Suisse. The potential framework permitting AT1 bonds offers a middle ground between stricter core equity demands and operational flexibility for the institution.
Swiss authorities continue to review regulatory structures to bolster financial stability while maintaining the international standing of the nation's banking sector.
Sources: Bloomberg