UBS, Credit Suisse tie-up may not lead to Swiss bliss25 March 2023
The marriage of UBS and Credit Suisse was hastily arranged to prevent a global financial meltdown -- but the size of the resulting megabank could cause domestic problems in Switzerland, the central bank admitted Thursday.
The Swiss National Bank, which played matchmaker in Sunday's takeover of Credit Suisse, said the formation of one giant bank in Switzerland would create competition issues that would need addressing carefully.
UBS was already the biggest bank in the country -- and will now become even larger after swallowing up the second-most important bank in the wealthy Alpine nation, where a vibrant banking scene is central to Swiss culture.
With Credit Suisse shares in freefall last week, the Swiss government, the SNB central bank and the FINMA financial regulators strongarmed UBS into buying its stricken rival before the markets reopened on Monday.