ZURICH (Reuters) -UBS aims to keep operating out of Switzerland, but current capital proposals by the Swiss government are not acceptable to the bank, CEO Sergio Ermotti said on Thursday.
“We want to be a Swiss bank,” he said in response to a question on whether the bank could move its headquarters elsewhere.
However, new regulation proposed by the Swiss government to strengthen financial stability harmed the competitiveness of the bank and the country, Ermotti added.
“They are not going to work for us,” he said, referring to Swiss rules that would require UBS to find billions in additional capital, calling the situation “quite serious.”
CALL FOR COMPROMISE ON BANKING RULES
UBS may have to look at what other actions it has to take, Ermotti said, refusing to discuss mitigation strategies and making a plea for Switzerland to focus on recovery and resolution plans of a bank when drawing up future regulation.
UBS remained hopeful that a reasonable outcome on the new capital rules can be reached with the Swiss government, Ermotti said, speaking at a finance conference in London.
“Compromise is the ability to really look holistically on how you make the financial system stronger,” he said. “I’m hopeful that we can find a solution that combines the right things for UBS, shareholders, clients, but also for the country.”
(Reporting by Ariane LuthiEditing by Dave Graham)
