Swiss bank UBS is planning to advance with a $25 billion SRT transaction to tackle potential higher capital requirements in Switzerland.

According to the Zhitong Finance and Economics APP, it is learned from informed sources that UBS (UBS.US) is currently in contact with investors to advance a potential Significant Risk Transfer (SRT) transaction in order to explore ways to alleviate the impact of the Swiss government's proposed higher capital requirements. The informed sources stated that UBS is considering an SRT transaction linked to a 2 billion Swiss franc (approximately 2.5 billion US dollars) loan. They revealed that the size of this SRT transaction may account for around 3% of the reference loan portfolio.