Potential relocation of UBS headquarters could put 12,000 jobs at risk in Switzerland

It has been reported that Switzerland's largest bank, UBS, could lose up to 12,000 employees if it moves its headquarters to another country due to planned tightened capital rules. The bank's potential departure has heightened concerns about the future of the financial sector in the country.

Discussions continue in the Swiss parliament regarding the amount of capital UBS must hold for its foreign subsidiaries. The upper house of parliament proposed a regulation in September requiring the bank to back its overseas subsidiaries with 90 percent core capital. UBS management argued that this obligation is overly burdensome and warned that if the rules become too strict, it could reassess its future in the country.

According to sources speaking to Reuters, the bank is working on alternative scenarios such as moving its headquarters to another country or merging with a different financial institution in case the new regulations create unacceptable costs. While some shareholders have called on the bank to leave Switzerland, management has stated that it wants to stay in Switzerland. The Swiss Bank Employees Association called for a viable compromise to prevent job losses.