UBS Reassures Switzerland It Has No Plans to Leave
[ZURICH] UBS has no plans to leave Switzerland, the bank’s compliance and governance chief Markus Ronner said on Friday (Mar 28) amid a debate on how to regulate the country’s biggest lender.
Background: Threat to Leave Switzerland
This month the head of the Swiss Bankers Association said UBS might consider leaving the country if the authorities drew up regulations for the bank that are too onerous.
No Plans to Leave Switzerland, Says UBS Chief
Speaking in a debate with lawmakers on national broadcaster SRF, Ronner said UBS had a very close relationship to its home country and “certainly has no plans to leave Switzerland”.
Recent Developments
Two years ago, UBS acquired Credit Suisse after its old rival collapsed, sparking calls for stricter regulation in the industry to prevent the risk of another banking crisis.
Proposed Concessions
Reuters reported on Wednesday that UBS had floated the idea of capping the future size of its investment bank as a concession to head off tougher capital requirements.
Conclusion
UBS has reassured Switzerland that it has no plans to leave the country, despite recent suggestions that it might consider doing so. The bank’s compliance and governance chief, Markus Ronner, made the statement in a debate with lawmakers, emphasizing UBS’s strong ties to its home country.
FAQs
Q: Why did UBS consider leaving Switzerland?
A: According to the head of the Swiss Bankers Association, UBS might consider leaving Switzerland if the authorities drew up regulations for the bank that are too onerous.
Q: What concessions has UBS proposed to head off stricter capital requirements?
A: UBS has floated the idea of capping the future size of its investment bank as a concession to head off tougher capital requirements, as reported by Reuters.
Q: Will UBS’s decision to stay in Switzerland have any implications for the banking industry?
A: Yes, UBS’s decision to stay in Switzerland could have implications for the banking industry, as it may set a precedent for other banks to follow and could potentially lead to a shift in the way banks are regulated.
