04:46 AM EDT, 04/11/2024 (MT Newswires) -- (Updates with a response from UBS in the last paragraph.)

UBS (UBS) is facing potentially higher regulatory capital requirements under reforms recommended by the Swiss government in the wake of the collapse of Credit Suisse, Bloomberg reported Wednesday.

Switzerland's Federal Council is proposing that systemically important banks should hold significantly more capital against their overseas units, Bloomberg reported, citing a report on banking stability.

The proposed changes would identify UBS as the country's sole globally systemic lender, and target the way it accounts for subsidiaries overseas. The proposals are meant to address a capital gap that contributed to the collapse of Credit Suisse and its state-backed rescue and takeover by UBS last year.

UBS has spoken out against any tightening of capital requirements, which are now set at 60% for foreign subsidiaries, according to the report.

UBS declined MT Newswires' request for comment on the matter.

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