ZURICH, June 6 (Reuters) - UBS may be able to

carry out fewer share buy-backs in future following proposals

that it should hold higher levels of core capital, the Swiss

government said on Friday.

The government proposed higher capital requirements for the

lender's foreign units as part of wide-ranging new rules for UBS

aimed at making Switzerland's financial centre more robust in

the wake of the collapse of Credit Suisse in 2023.

Dividend payments and organic growth should still be

possible, subject to "appropriate transitions periods and

provided profits have been generated," the government said.

"The measure could mean that UBS will temporarily implement

fewer share buybacks and reports a slightly lower return on

equity along with lower risks," the government said in a

statement.

UBS Chairman Colm Kelleher in April reiterated the Swiss

bank's intention to repurchase shares to the tune of $3 billion

in 2025, despite the looming capital rule changes and global

economic uncertainty.

The growth of foreign subsidiaries or acquisition of foreign

companies by UBS will still be possible, but will become more

expensive because it has to be fully financed by the core

capital, the government added.

"The measure can therefore make foreign growth in

subsidiaries more expensive," it added.