Swiss Parliament Panel Backs UBS Plan to Use AT1 Debt for Capital
· Business · Bloomberg, Financial Times
A key Swiss parliamentary committee has recommended allowing UBS Group AG to meet 50% of its new capital requirements using convertible AT1 debt. This proposal offers the Zurich-based bank a significant regulatory concession by reducing the amount of highest-quality equity it must hold. The Economic Affairs and Taxation Committee of the upper house finalized this support on Monday. The move serves as an interim victory for the bank as it navigates post-acquisition capital mandates. The parliament will now consider the committee's recommendation in further legislative sessions.
Why it matters
This decision lowers the immediate capital burden on UBS, allowing the bank to maintain more flexibility in its balance sheet while meeting regulatory standards.
Read the original report — Bloomberg
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