The upper house of Swiss parliament backed a proposal to ease new capital demands on UBS Group, while rejecting a stricter requirement in a bill put forward by the country's government.

Under the proposal that received majority support from the Swiss parliament's upper house on Wednesday, UBS would be required to hold 90% in top-tier capital against its foreign subsidiaries. The capital rules bill will now move to the lower house of parliament.

The Swiss government had proposed a bill that would require UBS to fully deduct the book value of its foreign subsidiaries from the CET1 capital of its parent bank, but its plan was rejected in Wednesday's vote.

Shares in UBS moved up 0.8% in European morning trading Wednesday after the results of the vote, having traded down earlier.

UBS didn't immediately respond to a request for comment. UBS Chief Executive Officer Sergio Ermotti previously said the government's proposal for 100% CET1 capital was excessive, while the bank said the 90% option would still significantly damage its competitiveness.

The Swiss lawmakers were voting on how strict new capital rules should be, after the country moved to overhaul its banking rules in the wake of UBS's rescue takeover of former cross-town rival Credit Suisse in 2023.