In a letter to the FDP federal councillors and the FDP group in the National Council, they warn of the negative consequences of excessive capital requirements for Zurich as a business and financial centre.

As the «Neue Zürcher Zeitung» reports, citing the letter, Carmen Walker Späh and Filippo Leutenegger criticise in particular the approach approved by the Council of States, under which UBS would in future have to hold 90 percent hard core capital against its foreign participations. From Zurich’s perspective, this would create significant competitive disadvantages.

UBS is of central economic importance to the canton of Zurich, the argument goes. Banks and insurers account for more than half of cantonal corporate tax revenues. At the same time, UBS employs more than 23,000 full-time staff in the canton of Zurich.

Walker Späh and Leutenegger therefore warn that excessively high capital requirements could not only increase the bank’s financing costs. They could also affect lending, investment, jobs and tax revenues. A relocation of business activities abroad would be particularly critical.

Alignment with the position of the Zurich cantonal government

The position is in line with the Zurich cantonal government’s previous stance. It had already expressed criticism in earlier consultations regarding the planned tightening and warned of a weakening of the international competitiveness of the financial and business centre.

Walker Späh and Leutenegger are receiving support from the Zurich FDP. National Councillor Andri Silberschmidt says to the newspaper: «The Council of States went too far.» Beat Walti, also a member of the responsible committee for economics and taxes (WAK), likewise calls for moderation: the requirements on UBS will in any case rise significantly compared with today. The key is not to cross a line that would jeopardise the competitiveness of the Swiss location.

Regulation must not weaken Zurich as a business location

The message from Zurich is therefore clear: financial stability and the protection of taxpayers are undisputed objectives. However, regulation must not go so far that it weakens UBS’s competitiveness and, with it, Zurich as a business location.

The «Lex UBS» is expected to be debated in the National Council from November. The question of how much additional equity UBS will have to hold in future will thus also become a decisive location issue for Zurich.