ZURICH (Reuters) – UBS could be seen as too big for Switzerland after its takeover by Credit Suisse, former Swiss Finance Minister Ueli Maurer said on Saturday, with steps needed to reduce risks at the enlarged bank.

“If you look at the numbers alone and compare UBS to the Swiss economy, it’s huge,” Maurer told the Tages-Anzeiger newspaper. “Therefore, the risk must be reduced.”

At nearly $1.7 trillion, UBS’s balance sheet is twice the size of Switzerland’s annual economic output, giving the bank unusual weight for a major economy.

If the bank fails, there will be no local rivals left to absorb it, while the cost of nationalization will be devastating to public finances, experts warn.

Reducing risks is the primary responsibility of shareholders through their selection of board members, Maurer said.

“They need the responsibility, not the taxpayers in the end,” said Maurer, who left office months before Credit Suisse’s final collapse in March 2023.

“Legislative measures must also be examined,” said Maurer, who is also defending himself after a recent parliamentary report raised questions about his actions as the Credit Suisse crisis finally worsened. in 2022.

The Swiss government last year outlined plans for tougher capital requirements for UBS and three other major Swiss banks in a bid to make the financial sector more resilient after the death of Credit Suisse.

Details of the exact capital requirements have not yet emerged, but the possibility that UBS could hold $15 billion to $25 billion in additional capital has met with resistance from the bank.

Maurer said that if capital requirements were too high, Swiss banks would no longer be competitive and might look to base elsewhere.

“For the Swiss economy with a lot of international multi-nationals, a big bank is a locational advantage,” he said. “But the risks must be mitigated.”

UBS has been approached for comment.