Swiss Parliament pushes for "stringent" capital requirements; Goldman Sachs estimates that UBS (UBS.US) needs an additional $17 billion, with the parent bank facing a gap of around $7 billion.

Zhitong Finance APP has learned that Goldman Sachs analysts stated a new capital proposal recently supported by the Swiss parliament will require UBS Group (UBS.US) to hold approximately $17 billion in additional equity capital beyond current requirements. Since the bank already holds more Common Equity Tier 1 (CET1) capital than required by Swiss law, Goldman Sachs estimates that, based on capitalization as of the second quarter, the UBS parent company would face a capital shortfall of about $7 billion.