Swiss parliamentary committee backs fee on UBS for liquidity backstop

by@Reuters

Summary

The Swiss parliamentary committee has endorsed a proposal to charge UBS a fee for access to a public liquidity backstop, aiming to bolster financial stability among systemically important banks. This fee would apply only to banks with significant international operations, currently making UBS the sole institution subject to this requirement. Additionally, the committee suggested that the fee's calculation should encompass various funding sources, including bail-in debt and collateral at foreign central banks. The Swiss Bankers Association opposed the measure, arguing it would serve as a special tax on UBS. This move aligns with broader efforts by Swiss parliamentary committees to enhance financial stability frameworks for major banking institutions.

Tokens

$UBS

Analysis

UBS: UBS is a Swiss multinational investment bank and financial services company offering wealth management, investment banking, and asset management services worldwide. It is the only Swiss bank currently meeting the criteria for systemically important lenders with significant international operations under the proposed policy. UBS declined to comment on the parliamentary committee's recommendation regarding the liquidity backstop fee. Swiss Bankers Association: The Swiss Bankers Association is the trade association representing banks operating in Switzerland. It opposed the proposed upfront fee on access to public liquidity support, arguing that it would function as a special tax specifically targeting UBS. Banking Regulation: Swiss parliamentary committees review and recommend measures to strengthen financial stability frameworks for systemically important institutions.

Categories

macropolitics
View Original Tweet