Swiss regulator welcomes UBS's strategic focus (updated)

Credit Suisse AG

12/06/2023 09:15

(Adds detail, background)
       ZURICH, June 12 (Reuters) - Swiss financial regulator
FINMA has specified the central elements of its regulatory
requirements for the merged UBS  UBSG.S  and Credit Suisse, it
said on Monday. 
    The regulator also said it "welcomes UBS's strategic focus,
which foresees a rapid reduction of risk in investment banking,"
in a statement after UBS formally completed its emergency
takeover of its stricken rival.
    FINMA said it would continue to supervise the merged bank
'very closely' during the integration process.
        "The legal consummation of the merger between UBS Group
and Credit Suisse Group marks the end of a phase of great
uncertainty," FINMA said in a statement. "This creates clarity
and stability."
  
        The regulator said one of the most pressing goals for
the new merged bank was to quickly reduce the risk of the former
Credit Suisse investment bank, but was confident this could be
achieved.
  
        "Following the completion of the transaction, the merged
bank has the necessary capital and liquidity resources to carry
out these risk reduction activities quickly and decisively and
to successfully complete the integration," FINMA said.
  
    Switzerland's largest bank became even bigger on Monday
after it announced it has completed its acquisition of Credit
Suisse  CSGN.S , following a government-backed rescue earlier
this year.
    The combined bank has a balance sheet of $1.6 trillion and
oversees $5 trillion of assets, giving UBS overnight a leading
position in key markets it would otherwise need years to grow in
size and reach. UBS has said the combined bank will be the will
"undisputed leader in Switzerland."
    The mega-bank will employ 120,000 worldwide, although it has
already announced it will in the future be cutting jobs to take
advantage of synergies and reduce costs.

 (Reporting by Noele Illien, editing by John Revill)
 ((Noele.Illien@thomsonreuters.com; +41 41 528 39 73;))