UBS has reiterated its intention to remain based in Switzerland following reports that chair Colm Kelleher held private discussions with US Treasury Secretary Scott Bessent about relocating the bank’s headquarters.

The Financial Times reported that Kelleher and Bessent discussed what a redomiciling to the United States could look like, as the Zurich-based lender explores contingency options should Switzerland proceed with stricter capital rules. Those proposals would require UBS to hold an additional $26 billion of capital, which the bank has described as “extreme” and disproportionate compared with global peers.

UBS, in a statement to Reuters, said: “As we have said repeatedly, we want to continue to operate successfully as a global bank out of Switzerland,” adding that it intends to keep running the group from Zurich. Bank insiders told Reuters that UBS has examined the possibility of moving as part of contingency planning. The US Treasury did not immediately comment, according to both outlets.

The debate over capital requirements follows Switzerland’s move to fortify its banking system to avoid a repeat of the Credit Suisse collapse. UBS acquired Credit Suisse in 2023 in a state-orchestrated rescue. The uncertainty has weighed on UBS’s share price, while management has mounted a lobbying effort in public and private to persuade policymakers to temper the proposals.

According to the Financial Times, the Trump administration has shown openness to attracting European financial institutions, even as US regulators remain wary of large lenders shifting their domicile given past public anger over taxpayer-funded bailouts. The newspaper also reported that the administration has signalled an intent to relax certain banking rules, with Bessent arguing for minimising capital and liquidity constraints to support lending.

Activist investor Cevian Capital has said the planned Swiss changes could render it “not viable” to run a large international bank from the country, contending that UBS would have “no other realistic option” but to leave if the proposals are not watered down. Some industry figures view the prospect of relocation as a negotiating tactic, though UBS executives maintain they have a fiduciary duty to examine all options should parliament not reduce the expected hit, the Financial Times reported.

For now, UBS’s stance is clear. “We want to continue to operate successfully as a global bank out of Switzerland,” the bank told Reuters. The US Treasury declined to comment.

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