The Swiss Central Bank stated that recent reforms could help enhance UBS's capital value.

Gate News bot reports that according to Bloomberg, the Swiss Central Bank has stated that UBS Group should be able to meet any new capital requirements proposed by the Swiss government’s recent reform plan without having to use shareholder funds or excessively cut back on investor spending.

The Swiss Central Bank stated in its annual financial stability assessment report released on Thursday that measures aimed at enhancing UBS’s resilience to potential losses from overseas branches are the “best solution” for ensuring robust capital.

Switzerland announced some proposals earlier this month that may require UBS to hold up to $26 billion in additional capital, but these proposals still need to go through parliamentary debate, and the timeline for phased implementation may extend over most of the next decade.

The Swiss Central Bank stated in its report: “Based on the bank’s current capital situation, its profit expectations, capital repatriation and other mitigating measures, as well as the proposed phased implementation period, the required capital increase is feasible. Raising funds from shareholders or significantly reducing distributions does not seem necessary.”