Lucerne, Switzerland — UBS CEO Sergio Ermotti strongly criticized suggestions for tougher regulations on the bank following its 2023 acquisition of Credit Suisse, labelling such calls as “fear-driven” and “populist” during an event at the Institute for Swiss Economic Policy on Tuesday.

As the Swiss government and regulatory bodies deliberate on imposing stricter capital requirements for UBS, Ermotti highlighted the bank’s significant contributions to the national economy.

“UBS is not only a major source of tax revenue for public coffers but also a beacon for the Swiss finance industry,” he asserted.

Ermotti cautioned against penalizing UBS for its global significance in the aftermath of Credit Suisse’s collapse.

“The demise of Credit Suisse should not be taken to mean that the only remaining major bank has to pay the price,” he emphasized.

In recent months, the CEO has been vocal about the growing perception that UBS has become too large for Switzerland, dismissing the notion that stricter regulations are necessary.

“At the end of the integration process, UBS’s balance sheet will be around 40% larger than before the acquisition of Credit Suisse, not twice as large,” Ermotti clarified.

The acquisition of Credit Suisse has subjected UBS to increased regulatory and political scrutiny as Switzerland explores measures to safeguard its economy from potential risks associated with a bank of such scale. With a balance sheet that will be significantly larger post-acquisition, concerns have risen about the implications of a potential failure.

Ermotti’s comments come amidst ongoing debates over the appropriate regulatory framework for UBS. While acknowledging the need for prudent oversight, the CEO argued that excessive regulation could undermine the bank’s competitiveness and, by extension, Switzerland’s financial sector.

As the discussions continue, UBS remains at the centre of a crucial dialogue about balancing financial stability with economic growth.

Ermotti’s statements underscore the bank’s position that it should not be unduly burdened by additional regulations as it navigates its expanded role in the Swiss and global financial markets.