The decline of Credit Suisse last year has significantly altered the Swiss banking industry, particularly in the corporate customer business where substantial adjustments are anticipated, according to the latest EY Banking Barometer.
The restructuring of the Swiss banking landscape following the takeover of Credit Suisse by UBS is expected to have long-term effects. The EY Banking Barometer, published on Thursday, suggests that there could be a supply gap in the form of credit shortages in the corporate customer business. The majority of the surveyed bank representatives (66 percent) believe that adjustments will occur in the medium to long term. For the 14th EY Banking Barometer, more than 100 Swiss banks were contacted in November 2023.
Increased regulation is another outcome of the takeover. The survey participants stated that the takeover of Credit Suisse by UBS has made a significant contribution to the stability of the financial markets. However, as a result, bankers expect a tightening of financial market regulation. They mentioned stricter requirements for liquidity and equity regulations (62 and 40 percent respectively) and increased supervisory activity by the Swiss Financial Market Supervisory Authority (Finma) (67 percent).
According to this year’s EY Banking Barometer, Swiss banks are starting 2024 with a good deal of optimism. They rate the business in the previous year as very positive and expect that the high profits of 2023 will contribute to strengthening resilience.
Especially retail banks want to retain their profits to strengthen their own capital and thus their own resilience; 72 percent of regional banks and 42 percent of cantonal banks have such intentions, according to the report. Financial institutions involved in wealth management, on the other hand, also want to invest in the further development of their business models (38 percent of foreign banks and 30 percent of private banks).
The study authors are surprised that only 8 percent of the surveyed banks want to invest in improving customer benefits. Given the rising expectations and the increase in the complexity of customer inquiries, this is quite astonishing.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇨🇭 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | EY Bankenbarometer, UBS, Eidgenössischen Finanzmarktaufsicht (Finma), Credit Suisse |
| Currencies | None |
| Securities | None |
