The draft Bill would require UBS to hold about US$20 billion in additional Common Equity Tier-1 capital (CET1) to help prevent another banking crisis and protect taxpayers. At the heart of the bill is a proposal for UBS to fully capitalise its foreign subsidiaries, up from 60 per cent currently, using CET1 capital alone. The committee has discussed allowing UBS to use Additional Tier 1 (AT1) capital to meet part of the requirement. AT1 debt is cheaper to hold than CET1 capital and is designed to absorb losses during times of stress, but regulators regard it as less secure. That could require UBS ⁠to suspend payouts to investors if its capital ratio falls below a specified threshold, enhancing the loss-absorbing capacity of AT1 bonds.