UBS mulls moving HQ abroad, according to media report

The Swiss bank UBS could relocate its Swiss headquarters abroad if capital demand is not reduced, Bloomberg News reports. + Get the most important news from Switzerland in your inbox UBS is considering pulling out of Switzerland if Swiss politicians and the authorities stick to their demands, which would trigger an increase in capital of around $25 billion (CHF22 billion), according to the article. Based on internal calculations, which in the worst-case scenario estimates an increase in the core capital ratio (CET1 ratio) from the current 14% to 20%, UBS management believes that the bank would no longer be able to operate competitively from Switzerland compared to large foreign banks, the news report said. With regard to UBS, Swiss politicians and the supervisory authorities are considering, among other things, the separation and full capitalisation of foreign subsidiaries. In this way, the authorities want to prevent UBS from collapsing, as was the case with Credit Suisse. However ...