01:28 PM EDT, 06/06/2025 (MT Newswires) -- (Updates with UBS statement in the headline and the first two paragraphs.)

UBS (UBS) said Friday it "strongly disagrees" with a regulatory proposal by the Swiss Federal Council under which it may need up to $26 billion in additional capital under proposed Swiss financial reforms.

The Swiss lender said the proposals would "result in capital requirements that are neither proportionate nor internationally aligned."

The largest requirement involves boosting capital reserves in its Swiss unit to fully cover foreign subsidiaries, increasing the threshold to 100% from 60%, which could require $23 billion alone, according to a Swiss Federal Department of Finance document.

The impact on shareholders "heavily depends on many factors including decisions made by UBS," the government said Friday in the document. "Dividend payments and organic growth should still be possible with appropriate transitional periods and if the generated profits are in line with the authorities' estimates."

"The measure could mean that UBS carries out fewer share buybacks, if only temporarily, and reports a somewhat lower return on equity, along with lower risks," according to the document.

Shares of UBS rose 2.6% in recent trading Friday.

Price: 33.69, Change: +0.85, Percent Change: +2.59