India, June 6 -- Swiss banking major UBS Group AG (UBS) said Friday that it supports most regulatory proposals issued by the Swiss Federal Council but strongly opposes the extreme increase in capital requirements, arguing that they lack proportionality and international alignment.
The new proposals would require UBS to fully deduct investments in foreign subsidiaries, deferred tax assets on temporary differences, and capitalized software from its CET1 capital, alongside increased prudential valuation adjustments.
UBS noted that the changes would force the company to hold an estimated additional $24 billion in CET1 capital, primarily due to a $23 billion deduction of its foreign subsidiaries' investments. At the group level, the CET1 capit...