UBS could relocate Swiss HQ if capital demand is not reduced, Bloomberg News reports

(Reuters) - UBS Group AG is exploring options to relocate its headquarters if Switzerland enforces a requirement for the bank to hold an extra $25 billion in capital, Bloomberg News reported on Thursday, citing people familiar with the matter.

Internal estimates suggest the extra buffer could push UBS's key capital ratio to roughly 20% under the toughest conditions, up from its current 14%, the report said.

The Swiss government is trying to tighten banking regulations in the wake of the 2023 collapse of Credit Suisse.

UBS, which subsequently acquired Credit Suisse, has resisted higher capital requirements, saying such a move would increase costs for companies and households. The bank was founded in 1862 in Switzerland.

UBS did not immediately respond to a Reuters request for comment.

(Reporting by Bipasha Dey in Bengaluru; Editing by Sahal Muhammed)