The final Basel III framework is a comprehensive reform package aimed at strengthening the solvency and liquidity of banks. According to the Swiss Federal Council on June 26, 2024, high-risk activities will require more capital, while lower-risk ones will require less. From the outset, the intention was to coordinate implementation globally to avoid competitive disadvantages for internationally active banks. In Switzerland, this primarily concerns UBS.
"Borrowing costs increase by around 1 percentage point for construction projects"
The impact of the adjustments on owner-occupied residential property is minimal—in fact, capital requirements in this area are even lower. However, the effects on construction projects are significant. This is due to several factors, chief among them concerns about the methodology used to determine the capital requirements.
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