Could UBS really leave Switzerland? In this episode, Anthony Cheung and Stephen Barnett break down the growing dispute between Switzerland’s biggest bank and the government over new capital requirements and why tougher regulation could have major consequences for UBS and its shareholders.
We explain how banks actually work, why Common Equity Tier 1 (CET1) capital matters, what changed after the collapse of Credit Suisse and why forcing banks to hold more capital can make them safer but potentially less competitive.
We also look at the battle between traditional banks and fintech challengers, as Monzo considers its next move following takeover interest from Nubank. With Revolut racing ahead and Monzo looking for fresh capital, we explore why some challenger banks have succeeded while others have struggled to scale and what could happen next.
00:00 The Ultimate Banking Mistake
04:10 How Banks Really Work
06:41 What Is CET1?
12:44 Why Banks Are Too Big to Fail
20:18 UBS vs Switzerland
27:54 Why UBS Is Fighting Back
32:23 How UBS Compares
38:35 What’s Happening at Monzo?
46:51 How Challenger Banks Work
49:05 Revolut vs Monzo
52:30 What Happens Next?