UBS is drawing up fallback plans that could see it move its headquarters abroad, Reuters reported, citing The Wall Street Journal.

The Journal said on Wednesday that the plans are being prepared in case Swiss lawmakers set tougher capital rules for the bank. Its report cited people with knowledge of the matter.

According to the Journal, UBS could buy a US financial firm and move there.

Other options include a merger with a European rival or a sale to a US lender.

Reuters said it could not immediately confirm the report, and UBS declined to comment.

Switzerland is weighing stricter “too-big-to-fail” capital rules after UBS rescued Credit Suisse in 2023, Reuters noted.

UBS has said that backing its overseas units fully with top-quality capital would be excessive.

In its view, such a rule would leave it at a disadvantage to global rivals.

In September, Switzerland’s upper house backed a version that would require those units to be 90% covered by top-quality capital.

UBS estimated that this could add about US$16 billion to the core capital it must hold.

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