A key committee within the Swiss Parliament has backed a motion that could delay the implementation of stricter capital requirements for UBS, following the bank’s controversial takeover of Credit Suisse in 2023.

The move reflects growing concern among Swiss lawmakers that aggressive regulatory changes might destabilize the country’s largest financial institution just as it attempts to complete one of the most complex mergers in European banking history.

Political Support for Delay Grows

The motion, supported by Switzerland’s Economic Affairs Committee, calls for a thorough review of proposed capital adequacy changes. Lawmakers argue that new regulations should not be rushed, especially given the potential impact on UBS’s competitiveness and long-term stability.

“This is about ensuring the rules are appropriate and proportionate,” said a committee spokesperson.

Regulatory Pressure vs. Market Realities

Swiss regulators have been pushing for tougher standards in the wake of the Credit Suisse collapse. However, UBS executives and some lawmakers warn that premature implementation could increase financial risk or reduce lending capacity during a critical restructuring phase.

The final decision rests with the Swiss Parliament, which is expected to debate the motion in the coming weeks.