Basel Committee Defends Swiss Bank Capital Rules Amid UBS CEO Ermotti Concerns and Bloomberg Critique of Leverage Ratio Reform

The head of the Basel Committee on Banking Supervision has stated that Switzerland's current bank capital regulations do not place Swiss banks, including UBS, at a disadvantage compared to their international competitors. This statement counters UBS's opposition to government proposals aimed at tightening capital requirements. UBS CEO Sergio Ermotti has expressed concerns about the impact of stricter capital rules on the bank's competitiveness, noting the challenges posed by tighter capital requirements. Meanwhile, Bloomberg's critique of reforming the supplementary leverage ratio, suggesting it would irresponsibly weaken banks by increasing their exposure to Treasury risk, has been challenged as incorrect and misguided.