Switzerland's Council of States has approved measures that would require UBS Group AG to hold significantly more capital, according to a statement issued by the bank in response to the parliamentary decision.

If confirmed through the full parliamentary process, the proposed requirement to back foreign participations with 90% CET1 capital would require UBS AG to hold approximately $16bn in additional CET1 capital. Combined with approximately $2bn in additional CET1 capital stemming from ordinance-level measures announced earlier this year, and approximately $15bn already required under existing regulations following its acquisition of Credit Suisse, UBS would be required to hold a total of around $33bn in incremental CET1 capital since the Credit Suisse acquisition.

UBS said ordinance-level changes, once implemented, would eliminate an estimated $4bn of CET1 capital at the Group consolidated level, with total annual costs resulting from the acquisition amounting to around $2.5bn.

In its statement, UBS said the Council of States decision "is not a compromise and fails to address the root causes of the Credit Suisse collapse." The bank added that the outcome "disregards the serious concerns expressed by the overwhelming majority of respondents in the democratic consultation process," which it said included business representatives, employee associations, and most cantons.

UBS said it would continue to participate in the ongoing parliamentary process and advocate for regulation it describes as "targeted, proportionate and internationally aligned."