On Wednesday, UBS Group AG (NYSE: UBS) extended its decline, with shares slipping nearly 2% at the time of writing, bringing the two-day drop to more than 5%.

The selloff comes after the Swiss bank suffered a setback as lawmakers voted by a clear margin to support a proposal that could ultimately force the global wealth management giant to hold billions of dollars in additional capital. Under the proposal, the bank would be required to back 90% of the value of its overseas subsidiaries with its highest-quality capital, known as CET1.

While this threshold falls short of the 100% backing requirement pushed by the government, it also deviates from the compromise approach favored by UBS Group AG, which had advocated for a plan relying heavily on the use of convertible bonds.