Ubs Response to the New Basel Capital Accord

The Committee expresses the desire to produce, on average, neither a net increase nor a net decrease in minimum regulatory capital, after allowing for operational risk. It is, however, difficult to see how, in practice, the Committee can calibrate the charges in such a way as to retain the current levels of capital, given the variety of approaches on offer, an uncertain migration path for many of the major banks and the lack of detail currently attaching to many aspects of the proposals.