UBS Group (UBS) faces a potential capital requirement of as much as $20 billion as Switzerland's upper house delayed a vote on proposed banking rules to Sept. 23, Bloomberg reported Thursday.

The draft law would require UBS to back the full value of its foreign subsidiaries with high-quality CET1 capital in Switzerland, the report said.

Lawmakers are also considering a compromise allowing AT1 bonds to cover half of the additional requirement, the report said. The vote will then move to the lower house, with a final decision not expected until next year, it said.

UBS did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)