Switzerland’s proposal to introduce tougher capital requirements on UBS Group will be feasible for the banking giant and shouldn’t excessively reduce its shareholder distributions, the country’s central bank said.

UBS’s current capital position and its profitability expectations, coupled with potential mitigating measures and a phased-in implementation period for the new rules, mean the required capital increase will be achievable, the Swiss National Bank said in its annual financial stability report published Thursday.