ZURICH, Oct 31 (Reuters) - How much capital UBS

needs to hold under new stability measures being considered by

Swiss authorities will depend on the bank's resolvability,

Finance Minister Karin Keller-Sutter said on Thursday.

Swiss financial market regulator FINMA defines resolvability

as creating the conditions for restructuring a systemically

important bank in a crisis, or allowing it to exit the market by

way of bankruptcy, without jeopardising financial stability.

UBS is currently waiting to see what rules are adopted under

a set of "too big to fail" proposals sketched out by the Swiss

government in April, which aim to prevent the kind of banking

collapse that brought down Credit Suisse last year.

UBS acquired Credit Suisse after the latter's demise,

creating what critics have called a "monster bank" and putting

pressure on the government to ensure it does not fail and hit

the economy.

Keller-Sutter said subsidiaries of Credit Suisse in the

United States and Britain had been insufficiently capitalized,

but that officials were still examining how important

capitalization of such units should be in future.

She declined to be drawn on whether the amount of equity

banks should back their foreign units with should be nearer to

60% or 100%, speaking in Zurich at a Bloomberg event.

"This depends on the resolvability of UBS specifically

because we're talking about UBS," she said.

"And you have to look at the whole package because there are

also progressive components of capital requirements, which will

rise because of the size of the bank. There will be other

capital requirements, for instance, followed by stress tests."

Shortly afterwards, she added: "But I must also say that we

are catching up with foreign jurisdictions because they have

more than 60% in other jurisdictions."

Officials would deliver proposed amendments to ordinances

and legislation in the first half of 2025, which would then be

subject to regular consultations, Keller-Sutter added.

If there were another crisis, it would be about liquidity,

the minister said.

UBS has pushed back against the prospect of higher

capital requirements, arguing it could hurt business.

In the end, a balance is needed to be struck between

ensuring the competitiveness of the financial sector and

stability, Keller-Sutter said. She said she did not think

authorities should interfere in setting salaries when asked

about criticism she herself had voiced against UBS executive pay

levels.

The minister said the government did, however, believe

in creating scope for clawbacks on compensation and that if

limiting bankers' pay ever was put to a referendum under the

Swiss system of direct democracy, it would likely pass.

Keller-Sutter said she did not rule out the possibility of

market regulator FINMA being given the authority to impose fines

on banks, noting that fines and introducing a so-called senior

manager regime are "very popular" in parliament.