UBS CEO says Switzerland should not ‘exceed’ its capital requirements

UBS CEO says Switzerland should not ‘exceed’ its capital requirements
UBS CEO says Switzerland should not ‘exceed’ its capital requirements

Sergio Ermotti, CEO of UBS, said on Monday that criticism that the bank had become too big for Switzerland and needed to set aside more capital was misplaced.

Mr Ermotti, who returned to UBS last year to lead the process of absorbing Credit Suisse after an emergency bailout, said he agreed with most of the government’s recent proposals to to make the Swiss banking system safer, but not with plans to force UBS to hold more capital.

“When you talk about the only areas where we think it’s appropriate not to exceed the limits, those are the areas relating to capital,” he told Reuters in an interview in Zurich.

He added that the Credit Suisse acquisition already required UBS to set aside $20 billion in additional capital.

UBS will reinvest part of the $13 billion in planned savings into strengthening the bank’s processes and operations following the Credit Suisse takeover, Ermotti also said.

UBS shares have soared since the takeover, with investors optimistic about the prospects of the combined group, given the low acquisition costs, considerable increase in assets and relatively easy integration until now.

($1 = 0.9268 euros) (Reporting by Elisa Martinuzzi and Noele Illien, Editing by Louise Heavens)

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