Swiss regulators have softened proposed capital requirements for UBS, though the banking giant still needs to add roughly $20 billion in additional buffers. The changes, announced Wednesday, follow UBS's government-engineered rescue acquisition of Credit Suisse last year, with regulators aiming to prevent a repeat of the problems that brought down the rival bank.

Under the revised rules, UBS won't immediately face an $11 billion deduction from its $71 billion capital base related to intangible assets like software and deferred tax assets. Some analysts had predicted this deduction, though critics argue these assets shouldn't count as capital because they hold little value during a crisis.

The softened requirements give UBS more flexibility as it integrates Credit Suisse and adapts to stricter regulatory standards. The $20 billion buffer still represents a substantial increase from previous expectations, reflecting regulators' heightened focus on systemic risk following Credit Suisse's near-collapse.