The Swiss government has proposed increasing UBS’s capital requirements by up to $18bn in an attempt to reduce the risk of another Credit Suisse-style collapse, a move UBS previously called “extreme” and “excessive”.

A parliamentary inquiry last year noted that since UBS bought Credit Suisse for 3 billion Swiss francs ($3.65 billion) in March 2023, it has had a balance sheet bigger than the Swiss economy, and urged policymakers to take the foreign units into account.

The new capital requirement is part of a highly anticipated update of the country’s banking rules following the rescue takeover of Credit Suisse.