UBS chief executive officer Sergio Ermotti said on Monday, December 30, that Switzerland should not set such rules for the country’s banking sector that would put it in a disadvantageous position.
It is worth noting that Bern is preparing to overhaul the regulation after the mentioned financial institution took over Credit Suisse.
In the coming weeks, the Swiss authorities should put forward stricter banking rules. In this case, the goal is to form a state of affairs that will contain conditions and circumstances that prevent the possibility of a repeat of the Credit Suisse collapse that occurred last year. After the collapse of the mentioned lender, UBS remained Switzerland’s only global bank.
The financial institution, headed by Sergio Ermotti, worries about the possible consequences of the imposition of new banking regulations. Mr. Ermotti has already stated that the tightening of the mentioned regulations across the board could weaken Switzerland’s financial sector against competition in London, Singapore, and Hong Kong.
The head of UBS, while talking to media representatives, noted that Switzerland cannot afford to fall back into what he called the model student syndrome and introduce rules that do not apply in other countries.
Sergio Ermotti said that the collapse of Credit Suisse is the result of the actions of this financial institution. Also, in the relevant context, he separately noted that the Swiss authorities allowed the mentioned lender to get around the already existing regulations. Moreover, Sergio Ermotti stated that large banks have learned their lessons from past crises and are now a stabilizing factor, not a problem. Also, according to him, in a hypothetical situation in which UBS is facing difficulties, it is extremely unlikely that the taxpayer would have lost a franc. Sergio Ermotti stated that the financial institution he heads has enough reserves to cover any potential losses.
Mr. Ermotti noted that the integration of Credit Suisse into UBS was going smoothly. He also stated that in this case, the biggest challenge is the risk of delays in complex IT migration.
As we have reported earlier, UBS Profit Beats Forecasts.
