A push to ease banking regulation, the rules that determine how much risk a lender can hold on its books and how much capital it must keep as a cushion, has found support among Swiss lawmakers. The proposal is a victory for UBS, Switzerland's largest bank, and for its chief executive Sergio Ermotti.
Here is what regulation means in this context. A bank does not get to decide entirely on its own how it operates. Governments and financial authorities set requirements about how much capital a bank must hold and what losses it must be prepared to absorb. More regulation means tighter constraints. Softer regulation means fewer of them.
The short version: Switzerland's elected officials are calling for a lighter regulatory approach. That is a direct win for UBS, the dominant institution in Swiss banking, and for Ermotti, who runs it.
What lawmakers call for and what becomes formal law are two different things. The proposal has legislative backing. Whether it converts into binding rule changes is the step that follows.