UBS shares rise as Swiss lawmakers propose compromise on capital rules

Investing.com -- UBS shares climbed Friday after a group of Swiss senior lawmakers put forward a proposal that could ease looming capital requirements for the country’s largest bank.

The stock rose as much as 5% in early trading before pulling back. It remains up about 3%.

According to reports, the proposal would allow UBS to meet part of its future capital needs by issuing additional Tier 1 bonds rather than relying solely on equity.

The move marks a more lenient approach compared with earlier recommendations from the Federal Council, which had floated stricter capital measures.

UBS welcomed the direction of the new proposal, saying it represented a more constructive alternative to the Federal Council’s plan.

The bank has pushed back against tougher capital rules in recent months, arguing that its balance sheet is already robust and that further tightening is unnecessary.

“UBS continues to advocate for a strengthening of the regulatory framework with targeted, proportionate and internationally aligned measures,” the bank is reported to have said in an emailed statement.

It added that Switzerland already maintains high capital standards and warned that imposing additional constraints could weaken the country’s competitiveness.

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