MAS: Credit Suisse to continue operating without interruption in Singapore following UBS rescue

SINGAPORE – The UBS takeover of Credit Suisse is not expected to have an impact on the stability of Singapore’s banking system, with the latter to continue operating in Singapore without interruptions and its customers having access to their accounts, the Monetary Authority of Singapore (MAS) said on Monday.

The central bank added in its statement that Credit Suisse’s contracts with counterparties remain in force.

The two Swiss banks – key pillars of Swiss finance – do not serve retail customers, and that they primarily run private banking and investment banking businesses in Singapore.

Besides banking activities, Credit Suisse also conducts financial services under other licensed entities in Singapore, MAS said, adding that for now, these entities will continue operating under their respective licences.

The regulator said it has been in close contact with the Swiss Financial Market Supervisory Authority (Finma) and was briefed by the regulator earlier on Monday on the details of the takeover.

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As the takeover is executed, MAS, Finma, Credit Suisse and UBS will “facilitate an orderly transition, including addressing any impact on employment”.

MAS’ statement on Monday came a day after Finma announced that UBS had agreed to buy long-time rival Credit Suisse for 3 billion Swiss francs (S$4.3 billion). UBS would also assume up to US$5.4 billion (S$7.2 billion) in losses in a deal expected to close by the end of 2023.

In measures aimed at ensuring stability for Swiss and international financial markets, the Swiss central bank said Sunday’s deal includes 100 billion Swiss francs in liquidity assistance for UBS and Credit Suisse.

As one of the 30 global banks deemed systemically important, the fall of Credit Suisse would ripple through the global financial systems.

This article was first published in The Straits Times. Permission required for reproduction.