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 $18bn in an attempt to reduce the risk of another Credit Suisse-style collapse, a move UBS previously called “extreme” and “excessive”.

UBS Group (NYSE:UBS) is facing a $26B capital hike under new rules proposed by the Swiss government, according to a statement Friday, as regulators move to tighten oversight following the bank's rescue of Credit Suisse.