Former Swiss finance minister warns about size of enlarged UBS, newspaper says

ZURICH (Reuters) - UBS could beryllium seen arsenic being excessively large for Switzerland pursuing its takeover of Credit Suisse, erstwhile Swiss Finance Minister Ueli Maurer said connected Saturday, with measures needed to trim the risks of the enlarged bank.

"If you look astatine the numbers unsocial and comparison UBS with the Swiss economy, it is excessively big," Maurer told paper Tages-Anzeiger. "Therefore, the hazard indispensable beryllium reduced."

At astir $1.7 trillion, UBS's equilibrium expanse is treble the size of yearly Swiss economical output, giving the slope exceptional value for a large economy.

Should the slope fail, determination are nary section rivals near to sorb it, portion the outgo of nationalisation could severely harm nationalist finances, experts person warned.

Reducing risks was chiefly the work of shareholders via their prime of committee members, Maurer said.

"They indispensable instrumentality responsibility, not the taxpayers successful the end," said Maurer, who near bureau months earlier the last illness of Credit Suisse successful March 2023.

"Legislative measures indispensable besides beryllium examined," said Maurer, who besides defended himself aft a caller parliamentary study raised questions astir his actions arsenic the Credit Suisse situation worsened astatine the extremity of 2022.

The Swiss authorities past twelvemonth laid retired plans for tougher superior requirements for UBS and Switzerland's 3 different large banks successful a bid to marque the fiscal assemblage much robust aft Credit Suisse's demise.

Details of the nonstop superior requirements are yet to emerge, but the anticipation that UBS could beryllium made to clasp $15 cardinal to $25 cardinal successful further superior has met absorption from the bank.

Maurer said if the superior requirements were excessively high, Swiss banks would nary longer beryllium competitory and whitethorn look to beryllium based elsewhere.

"For the Swiss system with its galore planetary multi-nationals, a ample slope is simply a locational advantage," helium said. "But risks indispensable beryllium minimized."

UBS has been approached for comment.