Swiss business groups pressure parliament over UBS capital rules before vote

ZURICH, Sept 21 (Reuters) — Swiss business groups have weighed into the debate on tougher capital rules for UBS, writing to lawmakers to lobby against what they say risks being "excessive" regulation drawn up for the bank after the 2023 collapse of Credit Suisse. The heads of top business lobby economiesuisse, and bodies for SMEs, manufacturers, multinationals and pharma companies, said the government's proposals would massively disadvantage UBS against international rivals by ramping up capital costs. "Such excessive regulatory requirements would not only affect the banks themselves," the signatories wrote to upper house lawmakers in a letter dated September 18 seen. "In the long term, they would also be reflected in higher financing costs and a reduced supply of credit and capital market services for industry for our SMEs," they added. The government, which says stricter regulations are needed to strengthen banks and protect taxpayers from the risk of another banking meltdown, calculates its entire package of measures would mean UBS holding another $20 billion in capital. Lawmakers are deciding between the government's demand that UBS back its foreign units with 100% C