UBS Urged to Fortify Crisis Strategy Post Credit Suisse Acquisition

Swiss regulator FINMA has directed UBS to enhance its emergency plans following the acquisition of Credit Suisse, aimed at ensuring financial stability and safeguarding taxpayer money. The move follows criticism over FINMA's handling of the Credit Suisse crisis and calls for stronger crisis preparedness measures.

The Swiss financial regulator FINMA has mandated UBS to bolster its emergency protocols in the aftermath of its acquisition of Credit Suisse. This directive, announced Tuesday, seeks to guarantee that UBS can be dismantled or sold without endangering financial stability or relying on taxpayer support.

Suspending its annual approval of UBS's recovery plans, FINMA highlighted the need for enhanced resolution strategies for systemically important banks. The regulator's statement pointed to lessons learned from the Credit Suisse crisis, necessitating more robust crisis preparations.

UBS acknowledged the requirement, stating that it has initiated updates to its emergency strategies. FINMA emphasized UBS must ensure uninterrupted operations, particularly by revising liquidity and refinancing plans. The urgency follows the Credit Suisse liquidity crisis in March 2023, causing a reassessment of Swiss financial oversight.

(With inputs from agencies.)