
The Swiss financial regulator, FINMA, has mandated UBS to enhance its emergency and recovery plans following its acquisition of Credit Suisse. This directive comes in light of the need for UBS to ensure it can be effectively wound down or sold without jeopardizing financial stability or requiring taxpayer support. FINMA has suspended the annual approval of UBS's recovery and emergency plans, emphasizing that adjustments are necessary due to the integration of Credit Suisse. The regulator indicated that UBS has a loss-absorbing capacity of approximately USD 200 billion and must further develop its resolution planning to strengthen its crisis preparations. The regulator's opinion suggests that UBS could be resolved today through a 'single point of entry' recapitalization if needed. FINMA expects UBS to review its plans and implement additional options to bolster its crisis management strategies, particularly for systemically important banks.
