Swiss lawmakers have backed a requirement for UBS Group AG to provide 90% Common Equity Tier 1 (CET1) capital for its foreign subsidiaries, tightening the post-Credit Suisse regulatory framework. The Council of States approved the measure 29 to 16, after the government initially proposed 100% CET1 backing that would have required UBS to raise roughly $20B. The compromise is expected to require between $16B and $18B in additional capital. UBS currently backs its foreign units with 60% capital and is allowed to use instruments including Additional Tier 1 capital. The Swiss National Bank and FINMA supported the original 100% CET1 plan, while the SNB has described the 90% level as a substantial amount of high-quality capital. The vote reflected broad political and public support for tougher rules after Credit Suisse’s forced merger with UBS in March 2023, despite warnings from business groups and Swiss cantons that stricter requirements could undermine the country’s competitiveness. UBS chairman Colm Kelleher and CEO Sergio Ermotti campaigned against the 90% CET1 option, with Ermotti calling it excessive and Kelleher warning the bank could reconsider its future in Switzerland. The bill still requires debate in the lower house, with a final decision not expected before late 2026 or early 2027; a public referendum remains possible, and UBS would have seven years to comply.