2023-06-12 08:38:00
Zurich (awp) – Financial market watchdog Finma warned on Monday that it “will continue to monitor the large merged bank very closely during the integration process.” The banking giant will have to comply with new capital and liquidity requirements.
The finalization of the merger between UBS and Credit Suisse, decreed on March 19 by the Swiss authorities, “brings clarity and stability”, estimated the Swiss Financial Market Supervisory Authority in a press release.
“One of the top priorities of the large merged bank is to quickly reduce the risks of the investment bank of the former Credit Suisse,” added the regulator. According to the latter, “the merged bank will have the capital and liquidity necessary to resolutely carry out this rapid reduction in risk and complete the integration”.
For the director of Finma, Urban Angehrn, “the intensive supervision phase of the big banks will undoubtedly continue. We will supervise the integration process with the greatest attention”.
The so-called “too big to fail” capital requirements, stricter due to the progressive component, will fully apply to UBS after a transition period. The strengthening of equity will thus begin gradually from the end of 2025 and end no later than the beginning of 2030.
The requirements in terms of risk-weighted capital (RWA) and those in terms of liquidity, which the units of the two banks must meet, will for the time being continue to be calculated according to the existing rules and models.
With regard to liquidity, Finma will define additional institution-specific requirements for the large merged bank this year. They must be applied from January 1, 2024.
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