UBS, Switzerland's largest investment bank, is considering relocating its Zurich headquarters overseas, the U.S. daily The Wall Street Journal (WSJ) reported on the 14th (local time). If UBS actually leaves Switzerland, a major transformation is expected to follow in the structure of Switzerland's banking industry, once synonymous with a global wealth sanctuary.

According to the WSJ, sources familiar with the matter and bank advisers are reportedly drawing up a "contingency plan" in preparation for the Swiss parliament's recent legislative plans to amend banking laws.

Sources stated that this plan includes relocating UBS headquarters overseas, such as to the United States. This means UBS could move its headquarters location by acquiring a financial institution based in the United States. Along with this, options such as merging with a European competitor or selling to a U.S. firm are also reportedly being discussed.

This is interpreted as a measure to reduce the company's cost burden in preparation for the Swiss parliament's banking law revision work. Following the so-called "Credit Suisse crisis" in 2023, the Swiss parliament has been pushing to amend banking laws to apply stricter capital requirements to large banks. At the time, Credit Suisse was driven to the brink of collapse due to a liquidity crisis, and UBS acquired Credit Suisse, effectively remaining as Switzerland's last large bank. Public opinion in Switzerland supporting the banking law revision is also known to be high.

However, if the bill passes, UBS will be required to hold a substantial amount of new capital, and the resulting cost burden is estimated to reach $160 billion (approximately 21.5 trillion won). An insider well-versed in the bank's internal affairs told the WSJ that the UBS Group Chairman and Chief Executive Officer (CEO) are "completely in agreement" on the issue of relocating the headquarters.

The WSJ assessed, "If UBS leaves Zurich, the bank's 'Swiss identity,' which acts as the standard-bearer of Swiss finance, will be weakened." However, some analyses suggest that UBS is bringing up the relocation of its headquarters as a last resort to persuade parliament. The WSJ also pointed out that even if the headquarters relocation is actually achieved, there is a possibility that UBS will maintain its domestic Swiss business as is, or spin it off entirely to external investors.

Founded in 1862, UBS was once a large bank that rose to second place in the world by assets, and it still boasts the world's largest scale in the wealth management sector.

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