UBS Takeover of Credit Suisse: New Risks for the Swiss Economy, According to OECD

Thursday, 14 March 2024, 09:15

The OECD highlights the risks and challenges the UBS takeover of Credit Suisse brings to the Swiss economy. The merger has raised concerns about UBS' increased size and its compliance with 'too big to fail' regulations. While the takeover initially helped protect the Swiss financial system, it now poses competition and regulatory questions within the banking sector. Despite concerns, the OECD forecasts moderate growth rates below the country's average for the Swiss economy in the coming years.

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UBS Takeover of Credit Suisse: New Risks for the Swiss Economy

OECD raises concerns about the challenges posed by UBS' takeover of Credit Suisse. The merger has made UBS even larger, triggering stricter regulatory requirements under the 'too big to fail' rules.

Competition Concerns in Swiss Banking Sector:

UBS holds approximately 25% share of domestic deposits and loans.

Regulatory Questions and Future Outlook:

The bank's assets surpass the economic output of Switzerland.
Domestic regulators face the task of handling the implications of the takeover.

Despite worries, the OECD predicts a growth rate of 0.9% in 2024 and 1.4% in 2025 for the Swiss economy - both below the country's historical average of 1.8%.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

UBS Takeover of Credit Suisse: New Risks for the Swiss Economy

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