Switzerland’s Federal Council advanced banking reforms after the 2023 Credit Suisse collapse to strengthen too-big-to-fail rules, requiring systemically important banks like UBS to back foreign subsidiaries with high-quality CET1 capital at the parent level. The upper house (Ständerat) approved a 90% CET1 version in September 2026 by a 29-16 vote, rejecting a milder AT1-heavy alternative and moving the bill to the lower house (Nationalrat) for winter-session debate. Finance Minister Karin Keller-Sutter and regulators have backed the framework, while UBS continues lobbying against the added roughly $16 billion burden. The bicameral process, including possible reconciliation and referendum risks, is expected to conclude in 2027, aligning with the June 30 deadline and supporting the current trader consensus on timely passage.