![]() The investment bank has thousands of employees worldwide. Observers expect job cuts in the coming months, particularly for Credit Suisse’s investment banking business, which UBS chairman Colm Kelleher said his bank will wind down. It added that its Asia Investment Conference in Hong Kong from March 21 to 23 will go ahead as planned. The bank’s latest annual report shows that it had total assets of 53.4 billion Swiss francs (RM257bil) in the region at the end of 2022, out of 531 billion Swiss francs (RM2.56 trillion) globally.Ī Credit Suisse spokesman said the bank does not expect disruption to its client services. The Straits Times understands that Credit Suisse no longer discloses figures on Asia-Pacific as a division, as well as country-specific breakdowns. The Monetary Authority of Singapore said on Monday that UBS’ takeover of Credit Suisse is not expected to have an impact on the stability of Singapore’s banking system, with the latter continuing to operate in Singapore without interruption and its customers having access to their accounts. The wealth manager employs close to 3,500 staff here, and its Asia-Pacific global wealth management business had invested assets worth US$437bil (RM1.96 trillion) as of the end of 2022. Singapore is home to UBS’ biggest regional office, which is situated in Dhoby Ghaut. UBS and Credit Suisse are among 30 global financial institutions that are deemed to be systemically important, meaning their failure could trigger a wider financial crisis, and they run large operations globally. “Risks from contagion tend to be front-loaded, so as long as markets settle over the course of the next few weeks and no new failures reveal themselves, we should be able to ride through this period of heightened volatility,” said Lim. Some of the details, like the continuation of branches and banking departments at the two similar financial institutions, can take quite a while,” he added.Īssociate professor of economics Jamus Lim of Essec Business School Asia-Pacific said the collapse of Credit Suisse will undoubtedly dent the overall vibrancy and diversity of the local financial landscape.īut he added that the rationalisation will ultimately strengthen the system, so long as the unwinding of Credit Suisse’s positions and settlement of trades occur in an orderly manner. “However, in this case, the deal was hastily done and brokered. ![]() Mergers and acquisitions usually take place after many months of negotiations, noted Dr Aurobindo Ghosh, assistant professor of finance at Singapore Management University. Professor Lawrence Loh, director of the National University of Singapore (NUS) Business School’s Centre for Governance and Sustainability, said: “In the UBS-Credit Suisse case, it is even more complicated due to the multi-product, multi-market nature of the business, which is made even more intricate as both banks operate across many regulatory jurisdictions.” The takeover is likely to be a lengthy and complex process and will involve consequences such as job cuts while also bringing other opportunities, observers told The Straits Times.Ī former senior executive of both banks said that full integration of the banks will probably extend beyond the end of 2023, given their huge sizes and differences in internal processes. It will also assume up to US$5.4bil (RM24bil) in losses under the deal, which is expected to close by the end of 2023. Switzerland’s central bank announced on Sunday that UBS, the world’s largest wealth manager, will buy long-time rival Credit Suisse for three billion Swiss francs (RM14bil). SINGAPORE: The takeover of global banking heavyweight Credit Suisse raises fresh questions about the future of Switzerland’s second-largest bank, including its business in Singapore.
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