ZURICH (Reuters) – Switzerland mustn’t set guidelines for its banking sector that put it at a drawback, UBS CEO Sergio Ermotti was quoted as saying on Monday, because the nation prepares to overtake regulation following his financial institution’s takeover of Credit score Suisse.
Swiss authorities are within the coming weeks resulting from put ahead stricter banking guidelines geared toward stopping a repeat of the 2023 collapse of Credit score Suisse, which has left UBS because the nation’s sole world financial institution.
UBS is cautious of what may emerge and Ermotti mentioned more durable regulation throughout the board may weaken the Swiss monetary sector towards competitors in London, Hong Kong and Singapore.
“Switzerland cannot afford to fall again right into a ‘mannequin pupil syndrome’ and introduce guidelines that do not apply in different nations,” Ermotti advised Migros-Magazin, the weekly publication of one in all Switzerland’s major retailers.
Echoing the findings of a Swiss parliamentary investigation launched in December, Ermotti mentioned Credit score Suisse had prompted its personal demise, and that Swiss authorities had allowed the financial institution to get round laws that already existed.
Huge banks had discovered their classes from previous crises and had been immediately a stabilizing issue, not the issue, he argued.
“Even when UBS had an issue, it will be extremely unlikely that the taxpayer would lose a franc,” Ermotti mentioned, arguing his financial institution had loads of reserves to cowl any potential losses.
Ermotti mentioned the mixing of Credit score Suisse into UBS was going easily, describing the chance of delays in a posh IT migration as the largest problem.
On the fragile topic of pay, Ermotti mentioned he had at all times felt he needs to be remunerated consistent with opponents and in keeping with his efficiency, including that his first ever month-to-month wage as an apprentice was 350 Swiss francs ($388).
The CEO made 14.4 million francs ($15.96 million) in 2023.
($1 = 0.9020 Swiss francs)
(Reporting by Ariane Luthi; Enhancing by Sharon Singleton)
