Swiss National Bank President Martin Schlegel has thrown his weight behind the federal government's proposal for tougher capital requirements on UBS, stating that higher equity coverage is the best approach for financial stability.
Speaking on Radio SRF's "Samstagsrundschau" program, Schlegel said the central bank views the measures drawn from the Credit Suisse crisis response as "targeted and appropriate." He declined to pick between the 90 percent equity coverage for UBS foreign subsidiaries favoured by the Council of States and the 100 percent level demanded by the Federal Council, noting that the decision ultimately rests with politicians.
Schlegel's comments came in response to sharp criticism from UBS Chief Executive Sergio Ermotti, who argued that regulators share responsibility for Credit Suisse's collapse and failed to intervene in time. Schlegel countered that a parliamentary investigatory commission (PUK) reached a different conclusion, placing blame squarely on Credit Suisse's management and board of directors. The PUK did recommend improvements to authorities' conduct, he acknowledged.
He stressed that the SNB is responsible for financial stability rather than banking supervision, which falls to a separate regulator. Despite the public disagreement with UBS leadership, Schlegel said relations between the central bank and UBS remain intact, adding that the bank's criticism had been "taken note of."
When asked about the prospect of UBS relocating its headquarters away from Switzerland, Schlegel was guarded. "The choice of headquarters is ultimately the bank's decision," he said. "Switzerland certainly profits from UBS. UBS also profits from Switzerland."
Schlegel has served as SNB president since the autumn of 2024.
