(Bloomberg) -- Switzerland’s proposal to significantly increase capital requirements for UBS Group AG will be counterproductive for the bank’s stability and the country’s interests, according to a major activist investor in the bank. 

“If you have requirements that are too high, you won’t achieve the competitiveness that is important for a bank to be sustainably profitable,” Lars Foerberg, founder of Cevian Capital AB which recently bought a 1.3% stake in UBS, told Bilanz magazine.  

UBS already has higher capital demands than its competitors, he said. The comments come after Swiss ministry of finance and regulator Finma proposed higher requirements including a full backing of the bank’s foreign units, a shift that could translate into an extra $20 billion in capital.

Read more: Finma Chief Pushes Full Capital Backing of UBS’s Foreign Units

Foerberg sees “a high alignment of interests” between Switzerland and UBS. After the merger and repositioning of UBS in five years it will be the largest asset manager in the world, excluding the Americas —“the pride of Switzerland,” he said. 

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