Swiss Parliament’s Upper House has approved a plan to reduce capital requirements for UBS’s foreign subsidiaries, lowering the top-tier capital mandate from 100% to 90%. The move comes after government proposals initially demanded full 100% coverage, which UBS and industry groups argued would hinder international competitiveness. The revised rule aims to balance financial stability with operational flexibility for the bank’s global operations.

Supporters say the adjustment maintains strong safeguards while acknowledging the realities of cross-border banking. Critics warn it could weaken oversight of UBS’s international exposure. The decision reflects ongoing debate over how strictly to regulate systemically important banks post-financial crisis.

UBS has welcomed the change as a pragmatic step toward sustainable regulation. The final vote in the full parliament is expected in the coming weeks.