FRANKFURT, March 15 (Reuters) - The Swiss government is

set to submit a banking regulation package to parliament in

April that could force UBS to hold more capital,

SonntagsBlick newspaper reported on Sunday.

* The Federal Council plans to issue a so-called ordinance

that would fully exclude certain balance sheet items from

counting as capital, including software and deferred tax assets,

the paper reported, without naming sources.

* That change is set to take effect on January 1, 2027, and

could cost UBS 10 billion Swiss francs ($12.64 billion) after a

transition period, the report said.

* The governing Federal Council plans to submit the measures

alongside a draft law on stricter rules for UBS that would

require its foreign subsidiaries be fully capitalized.

* The tighter rules follow the collapse of Credit Suisse,

which UBS acquired in 2023 after a government-engineered

emergency takeover.

* Reuters reported in December that the government was set

to soften part of the banking regulation package.

* The bank said in its annual report last week that the

proposed changes to Swiss capital rules would require it to hold

additional so-called Common Equity Tier 1 (CET1) of around $22

​billion, from ​previous guidance of $24 billion.

* Switzerland's finance ministry declined to comment on the

report, but said that the Federal Council would adopt the

revision in the first half of this year.

* UBS did not immediately respond to a request for comment.