ZURICH, Jan 11 (Reuters) - UBS (UBSG.S), which recently took over Credit Suisse, might now be considered excessively large for Switzerland, former Swiss Finance Minister Ueli Maurer stated on Saturday. He called for measures to mitigate the risks associated with the expanded bank.

"If you simply analyze the figures and compare UBS to the Swiss economy, it is too large," Maurer remarked to the Tages-Anzeiger newspaper. "This is why steps need to be taken to reduce the risk."

With a balance sheet around $1.7 trillion, UBS's financial assets are double the annual output of the Swiss economy, granting it immense significance in the context of Switzerland's major economy.

Experts have cautioned that the collapse of such a bank would leave no domestic competitors capable of absorbing it, while nationalization costs could severely strain public finances.

Maurer emphasized that addressing risks primarily lies with the shareholders, who hold influence over the selection of board members.

"They must shoulder the responsibility; it should not fall on taxpayers," noted Maurer, who stepped down months before Credit Suisse's ultimate failure in March 2023.

"Legislative actions must also be explored," Maurer added, while defending his conduct in light of a parliamentary report that scrutinized his role as the crisis surrounding Credit Suisse escalated by late 2022.

Last year, the Swiss government proposed stricter capital regulations for UBS and Switzerland's three other major banks. The initiative aimed to strengthen the financial system following the downfall of Credit Suisse.

Although the precise details of these capital requirements have not yet been disclosed, speculation suggests UBS could be required to hold an additional $15 billion to $25 billion in capital, a measure the bank has resisted.

Maurer warned that excessively high capital demands could undermine the competitiveness of Swiss banks, potentially prompting them to relocate their operations elsewhere.

"For an economy like Switzerland, which hosts many global multinationals, having a major bank is an asset," he explained. "However, risks must be carefully managed."

UBS opted not to comment on Maurer’s statements. Earlier this month, the bank’s CEO, Sergio Ermotti, told Migros Magazine that UBS possesses sufficient capital to tackle any potential issues.

While supporting several Swiss government initiatives to strengthen banking regulations, Ermotti stressed that such measures should remain targeted and proportionate, as noted in the Migros Magazine interview.