UBS may need to slow down its growth due to the implementation of tough new capital regulations in Switzerland. In an interview, the country's finance minister emphasized the need for UBS and other major banks to increase their capital reserves in order to continue their business operations successfully.

The finance minister disclosed that under the new regulations, UBS will be required to hold more cash to prevent a potential collapse similar to Credit Suisse. This will make growth more costly for the bank.

The new rules aim to increase the equity banks must hold for their foreign branches from 60% to 100%, potentially forcing UBS to set aside an estimated extra $10 billion to $15 billion. This comes as a challenge, especially when considering the hefty salary of UBS CEO, Sergio Ermotti.

Despite UBS hoping for leniency from the government on capital requirements after acquiring Credit Suisse, the strict regulations are set to disrupt the bank's plans for share buybacks and pleasing investors.

The government is looking to strengthen the Swiss financial watchdog, Finma, to prevent banking crises like Credit Suisse's. However, there is resistance against allowing Finma to impose significant fines on banks for misconduct.

Credit Suisse's downfall was not due to financial insolvency but rather a lack of confidence in its management. UBS is urged to solidify its capital reserves to avoid a similar fate, especially when needing to support their overseas entities with tangible funds.

While these changes may cause discomfort for UBS and its shareholders, they are necessary to maintain stability in the banking sector and prevent future crises. The adjustments are all about ensuring a secure financial system in Switzerland.