Due to a foreseeable violation of the rules
Credit Suisse abandons plans for bank in China
May 31, 2023 at 8:41 am
The major Swiss bank has been working for years to set up a local bank in China. According to a report, Credit Suisse is thwarted by the emergency takeover by rival UBS.
Credit Suisse has abandoned plans to set up a local bank in China, according to insiders. In doing so, the troubled major Swiss bank wants to avoid a possible regulatory conflict in connection with the emergency takeover by its larger rival UBS, as two people with direct knowledge of the matter told the Reuters news agency.
Credit Suisse had been preparing for the past few years to set up a wholly owned local bank in China. It could have set up its own branch network to attract deposits and expand in the local wealth management business. The money house currently offers its customers in the world’s second largest economy services in the areas of asset management, brokerage and investment advice as part of a securities joint venture.
After years of investment, Credit Suisse has abandoned plans to apply for a license for a locally registered bank, according to insiders. The reason for the decision is probably that UBS already has a local bank in China.
In China, financial companies can only apply for and hold one license. Credit Suisse and UBS declined to comment. China’s banking regulator, the National Financial Regulatory Administration, did not respond to a request for comment.