UBS shares hit a 17-year high on Friday, December 12, on the Zurich Stock Exchange, following news that the Swiss government may review its plan to impose stricter capital rules on the bank, a move that has led the institution to consider leaving the country.
UBS shares rose more than 4% in the morning, reaching 35.17 Swiss francs (US$44.32), the highest level since February 2008, according to a survey by the Financial Times (FT) . Throughout the day, they lost momentum and were down 3.40% near 11:57 am Brasília time, at 34.63 Swiss francs (US$43.63).
Investor optimism was fueled by news that parties are negotiating a less rigid format than the original proposal. Lawmakers are considering easing the additional capital burden for UBS, allowing the issuance of AT1 bonds—a cheaper form of capital—instead of equity to cover up to half of the capitalization of foreign subsidiaries, according to the Financial Times.
In June, the Swiss government had proposed stricter rules for UBS, requiring the bank to maintain an additional $26 billion in core capital.
Regulators had been expressing concern about the size of banks since the collapse of Credit Suisse, which was rescued by UBS in 2024 , assessing that many had become "too big to fail" and indicating changes to avoid further bailouts with public money.
UBS CEO Sergio Ermotti warned in February of the risk of an " overreaction " and the possibility of losing competitiveness, depending on the measures proposed.
When the plans were announced, the bank described them as "extreme" and "disproportionate," going beyond what is required in other countries. It then began considering alternatives.
A report by the Financial Times in November revealed that UBS President Colm Kelleher met with U.S. Treasury Secretary Scott Bessent to discuss the possibility of relocating the company's headquarters to U.S. soil.
One of UBS's criticisms is that the new rules would force the institution to shrink, since subsidiaries abroad would also have to hold more capital, reducing their presence in various locations.
Proposals for regulatory capital have been weighing on UBS shares, which are still up 23.87% for the year. The market capitalization totals 108.8 billion Swiss francs (US$137.2 billion).
The Swiss government is not expected to make a decision on the rules before the end of the public consultations on the subject, scheduled to take place by January 9th.
According to the Financial Times , UBS assessed that the new proposal "goes in a more constructive direction than the previous extreme approach." However, it stated that "Switzerland already has one of the strictest capital requirement regimes in the world."
The institution stated that it advocates for "strengthening the regulatory environment with specific and proportionate measures," aligned with international practices.
