SNB's Martin says the 90% backing of foreign units with CET1 is a good amount, while 100% would have been better

The SNB has consistently sat at the stricter end of that argument, favouring full backing of foreign units against resistance from the affected bank and parts of government, and a board-level admission that full backing would have been preferable signals the central bank's position has not softened even as it accepts the legislative compromise. For the sector the operative channel is capital headroom at the parent: higher required backing of foreign units constrains distributable equity and buyback capacity at the dominant domestic bank, while having no read-through to the broader index beyond that single name. Worth watching is whether the government and parliament hold the current proposal or drift toward the central bank's preference, since that determines whether the capital question is settled or reopens. As commentary on an existing framework rather than a new measure, the immediate signal is about where the official debate stands, not a change in requirements.