The Swiss government on Friday proposed stricter rules for UBS following its takeover of Credit Suisse, which could make it hold $26 billion more in core capital, confirming some of the bank's worst fears about incoming new regulations.

The Swiss government has proposed increasing UBS’s capital requirements by up to $26bn in an attempt to reduce the risk of another Credit Suisse-style collapse, a move UBS called “extreme” and disproportionate.

The new capital requirement is part of a highly anticipated update of the country’s banking rules following the rescue takeover of Credit Suisse.