Comprehensive assessment: The Luxembourg unit of Swiss bank UBS has said new European checks of large financial institutions will boost investor confidence.
New European checks of major financial institutions are a plus for the sector, according to the Luxembourg business of Swiss bank UBS, which sees being named to a special watch list in a positive light.
That means that over the next year, the ECB will conduct a special risk assessment, asset quality review and stress test of these financial institutions, which are seen as vital to the health of the European banking system.
“From our perspective, any initiative introduced with the view to strengthen the Luxembourgish or Swiss financial centres is welcome,” a UBS spokeswoman told Delano following the ECB announcement. “We strongly believe it will restore investors’ confidence.”
She added that: “This is what UBS is continuously striving to do and in order to do that, we have been strengthening our capital position too, as it will give us a definite competitive advantage.”
UBS emphasising its capital position
According to the bank’s spokeswoman, “compared to its peer group of large international banks, UBS has the highest Basel III” tier one common capital ratio, which is an international benchmark that measures an institution’s financial strength and ability to handle financial shocks.
It achieved a ratio of 10% six years before the 2019 deadline set by Swiss regulators, she stated. “The clients of UBS recognise its capital strength and continue to entrust the firm with their assets.”
UBS also aims to shift much of its business away from investment banking towards wealth management, asset management and retail and corporate banking, leading to “a lower exposure to market risk” in the future, the spokeswoman said.