Published by Global Banking & Finance Review

Posted on November 5, 2026

· Last updated: November 5, 2026

Zurich President Warns UBS Leaving Would Be Catastrophic for Swiss Economy

Potential Impact of UBS Departure on Switzerland

Zurich Economic Chief's Warning

ZURICH, Nov 5 (Reuters) - If UBS were to leave Switzerland, the consequences for tax revenues and Swiss companies would be severe, Carmen Walker Spaeh, Zurich's economic affairs chief and current president of the cantonal government, told Swiss newspaper NZZ in an interview published on Thursday.

"That would be a catastrophe, not just for Zurich but for the entire Swiss economy," she was quoted as saying. 

• No one benefits if Switzerland places constraints on UBS that threaten its competitiveness, Walker Spaeh told NZZ.

• The Zurich-based lender faces costlier regulation under rules Swiss officials are crafting in response to the 2023 collapse of Credit Suisse.

• UBS is assessing the long-term consequences of the proposed change for its ability to compete from its Swiss base, CEO Sergio Ermotti said last week.

• The Swiss government has analysed how UBS would fare if it relocated abroad to escape stricter new capital rules, identifying significant costs that could match the capital hit of Swiss proposals.

(Reporting by Ariane Luthi, Editing by Louise Heavens)

Key Takeaways

  • Zurich official calls UBS’s potential departure a catastrophe for the Swiss economy and corporate sector.
  • Stricter post‑Credit Suisse regulations could push UBS to consider relocation—prompting government analysis showing avoiding it would be costly and complex.
  • UBS argues proposed reforms — including significantly higher capital requirements — would undermine its competitiveness and hurt Swiss lending, growth, and tax income.

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